According to a Citi report, the base metals market is expected to remain supported in the near term due to temporary easing in trade tensions, which is favorable for physical demand.
The bank revised its forecasts for the second quarter of 2025 to a neutral outlook across the entire complex, citing a 90-day delay in the tariff standoff between the US and China.
At the same time, Citi experts forecast weaker demand and lower prices in the third quarter as the effects of the trade truce fade while base tariffs increase. Copper remains in the center of attention, especially in the context of possible US duties. The bank's analysts still expect a 25% tariff on US imports of the red metal with some exceptions, having slightly shifted the anticipated timing of its implementation to the third quarter.
Meanwhile, fund positioning remains largely neutral or bearish, but investors are showing some interest in long positions in copper. However, Citi believes that any price fluctuations will be relatively modest.