Citi says LME Week participants cautious on metals outlook

Oct 23 (Reuters) - Citigroup said London Metal Exchange Week participants were generally cautious on the industrial metals outlook, citing weak growth, AI risks, high energy prices, supply growth and US copper tariff disappointment.

• Citi said it remains neutral on copper until there is greater clarity on energy markets and US tariff policy.

• "US tariff uncertainty is still seen as the biggest positioning and price risk," it added.

• The bank said aluminium attracted the most negative sentiment among LME Week participants, with concerns over a potential 1-2 million tons surplus in 2027 from strong Indonesia-led supply growth and a muted demand outlook.

• Citi said it sees 6-12 month upside to $60,000 per ton for tin in its base case and $70,000 per ton in its bull case.

• The bank said it views sub-$16,000 per ton nickel as offering attractive upside potential if Indonesian supply growth is constrained.

• Citi said it was generally cautious on metals on geopolitical risks ahead of the Israeli and US elections, but could turn more optimistic if a US-Iran deal is reached by year-end.

• LME copper rose 1.8% to $14,334 a metric ton, while aluminium gained 1.2% to $3,044, and tin rose 1.2% to $50,700 by 1615 GMT on Friday.