Base metals mostly dipped along with gold as worries around risk assets like commodities continued to build.
BMI said it expects copper to average $8,800 a ton this year, “on the back of a decline in U.S. dollar strength and supply constraints.”
However, it added that much of this depends on Chinese demand, with a limited growth outlook globally expected to cap demand. BMI also expected the Fed to start cutting interest rates from July, but said there could be a cut as soon as March-April.
Capital Economics said greater-than-expected industrial metals supply growth continues to push up stockpiles, especially for aluminum.
Still, it reckons metals supply growth will be more modest this year, while growth in demand will rebound as the energy transition gathers pace.
“Accordingly, we expect base metals prices to fare better this year,” with copper prices likely to rise the most.