Citi Research maintains a neutral to bearish view on base metals overall, arguing that copper prices will fall to $8,500 per tonne and aluminum prices will fall to $2,500 per tonne over the next three months. Citi believes the marked decline in base metal inventory levels in recent months, excluding nickel, will be short-lived.
As seasonal demand weakness ahead of the New Year holiday and headwinds from rising tariffs are expected to affect demand in the second quarter of 2025, Citi said it expects to see another oversupply (inventory build) in the coming weeks.
