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'I'm developing a gloomier outlook'- Matt Watson on critical metals downturn

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(Kitco News) - China's woes are weighing on critical metals, said Matt Watson, founder of Precious Metals Commodity Management.

Kitco interviewed Watson on Thursday.

Battery metals have been in a slump in 2023 after a blistering 2022. Lithium, lithium carbonate and lithium hydroxide are all down over 50% year-to-date according to Benchmark Mineral Intelligence index. Since late last year, Tesla has slashed the prices of its vehicles several times in various markets.

Watson said battery metals were due to come down.

"We've seen all these metals relax," said Watson. "Quite frankly it's just a pure macroeconomic slowdown that is overtaking the automotive world."

Watson noted that China's economic problems, which include property sector wobbles and high youth unemployment levels, are weighing on critical metals.

"China is at the heart of that discussion right now. There's a sentiment...that China really is in trouble," said Watson. "I'm developing a gloomier outlook by the week, and I think that's a concern shared by a number of analysts."

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.