MARKET OUTLOOK - Base metal prices may diverge in the coming months - Morgan Stanley

According to analysts at Morgan Stanley (NYSE:MS), the outlook for base metal prices in the coming months is mixed. In a note, analysts commented, "In the second quarter, we expect increases in copper and zinc prices, a more neutral stance on nickel and aluminum, and a cautious outlook on lead." They anticipate that supply constraints in concentrate will limit refined metal production for copper and zinc. For nickel, the supply outlook is contingent on policies in Indonesia. The report stated that "if we do not see additional quotas in this market, balance could tighten significantly." It is also predicted that the lead market will experience a surplus again in 2025, following a potential surplus last year.