Base metals slipped into negative territory on Tuesday despite positive Chinese services data, as investors locked in profits on recent gains in nickel and copper. The most-traded nickel contract on the Shanghai Futures Exchange closed down 1 percent at 91,940 yuan ($13,901.03) a tonne.
The most active rebar on the ShFE closed 0.35 percent lower, after hitting its strongest since Sept. 6 in the previous session. ShFE copper finished 1.3 percent lower, while aluminium ended 0.79 percent down. Earlier in the day, UBS raised its forecast for electric vehicles, which eventually led to an upgrade in the 2020-2021 nickel outlook. However, the brokerage warned that a vast inventory pile of metal and ore means it will be difficult to see nickel prices above the marginal mining costs of $6 per pound ($13,230 a tonne).