The broker Citi upgraded its 2023 lithium carbonate forecast by...

The broker Citi upgraded its 2023 lithium carbonate forecast by 50% to US$60,000 per tonne, while expecting prices to retrace by 20% over the next 12 months. A price fall that would throw up significant headwinds for ASX 200 lithium shares.

According to Citi’s Paul McTaggart (courtesy of The Australian), “China’s reopening presents risks around expectations and, on a 12-month view, we see more downside than upside to our commodity basket.”

While Citi forecasts a modest upside for aluminium, McTaggart said they envision “over 20% downside for thermal coal, rutile/zircon, nickel and lithium”.