(Bloomberg) — Battery-metals prices are set to retreat from highs this year as surging supplies trigger gluts, a leading Chinese industry group warned following a similar note of caution from Goldman Sachs Group Inc.
Nickel prices are likely to drop in the second half as the global market may see a surplus on rising supply led by mines in Indonesia, according to Chen Xuesen, a spokesman for the China Nonferrous Metals Industry Association.
Cobalt and lithium carbonate prices may also come off, Chen said, according to a statement on the group’s Wechat account. No estimates were given.
The expected retracement poses a near-term challenge for miners but will be welcomed by automakers, which have struggled in recent years to secure adequate supplies to meet increased demand.
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