Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious Outperformance
Find Stocks Now

Industrial metals to remain vulnerable to more softness near-term, says Goldman

Published 10/16/2023, 12:02 PM
Updated 10/16/2023, 12:07 PM
© Reuters. FILE PHOTO: The logo for Goldman Sachs is seen on the trading floor at the New York Stock Exchange (NYSE) in New York City, New York, U.S., November 17, 2021. REUTERS/Andrew Kelly/File Photo

(Reuters) - Goldman Sachs on Monday said it expects industrial metals markets to remain vulnerable to incremental softness in the near term due to deteriorating demand and the impact from higher interest rates.

"Building and construction activity remains the weakest segment, but there were downdrafts now noted in volume appetite from most other sectors, with the exception of aerospace," analysts at Goldman Sachs said.

The copper market could face near-term pressure from the likelihood that Chinese imports of the metal could be restrained, the bank said.

"We continue to see aluminium as the base metal with the best relative micro setup, as it is largely tied to China's supply constraint from the capacity cap," the Wall Street bank said.

Goldman remained bearish on nickel with a 12-month target price of $16,000 per metric ton as it expected the market to stay in surplus for the year ahead due to increasing Indonesian and Chinese supply.

Three-month nickel on the London Metal Exchange was trading around $18,710 per metric ton by 1425 GMT on Monday. [MET/L]

"We remain bearish on China lithium carbonate spot prices (12M Target at $15,000/t) given our expectation of the upcoming surplus in the market over 2024," the bank said.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.