Analysts at TD Securities point out that the first battle in the US-China trade sent nickel prices sharply lower, but a lull in news flow with regards to a new retaliatory rhetoric as tariffs bite US industry could have led some to speculate that ongoing negotiations could lead to a trade deal.
“We view the White House's announcement of an additional $200B round of tariffs as significant in escalating the tensions closer to a full-blown tit-for-tat trade war.”
“Given the extent to which nickel prices have incorporated expected EV demand, we expect nickel prices to come under further pressure.”
“We look to protect our gains from a potential short-covering rally, but continue to see risks to further downside to prices.”
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