![\"Angas-Zinc-Mine\"](\"http:\/\/www.bnmme.com.au\/wp-content\/uploads\/2015\/12\/Angas-Zinc-Mine.jpg\")
Nickel, copper, and zinc have been picked as the metals to watch next year.<\/p>\nNickel, copper, and zinc have been picked as the metals to watch next year.<\/p>\n
A new report by Morgan Stanley analysts have labelled the metals, which saw steady slumps throughout 2015, as the top picks, according to Bloomberg.<\/p>\n
We are stubborn nickel bulls in 2016,\u201d the report stated.<\/p>\n
They forecast a nickel average of $10,692 per tonne next year, zinc at $1747 a ton and copper at $5236 a ton.<\/strong><\/p>\n Speaking to ANZ senior commodities strategist, Daniel Hynes, he told Australian Mining the outlook for base metals into next year is positive.<\/p>\n \u201cThe outlook is better\u2026the oversupply is not as bad as the bulk markets [such as iron ore],\u201d he said.<\/p>\n \u201cWe\u2019ve seen the start of a readjustment in base metal supply, but the market has not been that interested to date.<\/p>\n \u201cThey\u2019ve been lost amongst the noise [of coal and iron ore], but the fundamentals are better<\/strong>, and for nickel and zinc we expect a market in deficit next year, but as always the poster price depends on Chinese demand.\u201d<\/p>\n Morgan Stanley stated that it continues \u201cto see only a modest abatement in China-led commodity demand growth, not the capitulation that year-to-date price performances imply\u201d.<\/p>\n \u201cThe fact that economic activity everywhere remains buoyant, commodity-trade flows are intact, and that producers are rapidly rebalancing their trades in reply to shock-low prices tells us that downside price risk is limited.\u201d<\/p>\n Credit Suisse has also backed nickel, expecting a dearth of the metal as operators will be cutting supply \u201cgiven the scale of losses that producers are incurring\u201d.<\/p>\n","protected":false},"excerpt":{"rendered":"