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Analysts at ANZ Bank expect demand to contract in Q2, as the pandemic spreads outside China. Mining disruptions and closures could offset some demand losses.

Key quotes

“The pandemic’s spread outside China and a slow restart of industrial activities inside China will subdue demand for industrial metals in Q2 2020.”

“Copper prices have never traded below the 90th percentile of production costs. So, we see the downside protected near USD4,000/t.”

“Nickel prices will be protected near USD10,000/t due to its exposure to China and electric vehicles.”