Copper and zinc are out of favor with analysts at Citi, who say they are “incrementally bearish” on the metals over the coming months.
“Our updated view is for further downside in copper to $8,000/t from $8,500/t, and $2,700/t for zinc from $2,900/t over the next three months,” analysts wrote in a note to clients.
Regarding nickel and tin, Citi is shifting neutral after prices fell to their bearish target prices. “We mark-to-market nickel to $23,000/t from $24,000/t, tin to $22,000/t from $24,000/t,” they wrote.
On silver, the analysts remain medium-term bullish and recommend buying the dip, with a six to 12 month price target of $25 per ounce.
They also remain relatively bullish on aluminum based on improving fundamentals, but reduced their near-term upside expectations to $2,400/t, from $2,700/t. Further, they downgraded their three-month price target for lead to $2,050/t from $2,200/t.
The analysts noted that iron ore prices have held up well since their downgrade, trading closer to $130/t supported by seasonal demand recovery.
“We believe prices are likely to continue trading in a tight range between $120 to $130/t in the next few weeks driven by restocking efforts by steel mills,” they wrote.
“However, we remain cautious on the outlook for the rest of the year and see the current rally as unsustainable and recommend selling into further rallies.”
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