Base metals prices rose on improved sentiment following the Bloomberg report that Chinese authorities are considering a package of measures to stabilize the stock market.

Top metals consumer China “will remain key in driving the general trend of the whole complex, most likely resulting in rangebound moves,” Sucden Financial said.

Meanwhile, gold edged higher as the dollar softened while investors awaited economic data and central bank decisions.

Battery Metals

Wood Mackenzie forecast a glut of lithium, cobalt, nickel and graphite to continue for several years.

It said automakers are likely sitting on large stockpiles of battery cells for EV sales that failed to materialize.

Citing the China Automotive Battery Innovation Alliance, Wood Mackenzie said only 387 GWh of the 747 GWh of power batteries produced in China in 2023 were installed into products.

“With storing batteries being an expensive business, automakers may have a more cautious appetite for purchasing cells in 2024.”