Aluminum will probably average $3,125 a ton this year in London. That’s up from the current price of $2,595.
Goldman Sachs Group Inc. raised its price forecasts for aluminum, saying higher demand in Europe and China could lead to supply shortages.
The metal will probably average $3,125 a ton this year in London, analysts including Nicholas Snowdon and Aditi Rai said in a note to clients. That’s up from the current price of $2,595 and compares with the bank’s previous forecast of $2,563.Goldman sees the metal, used to make everything from beer cans to plane parts, climbing to $3,750 a ton in the next 12 months.
“With visible global inventories standing at just 1.4 million tons, down 900,000 tons from a year ago and now the lowest since 2002, the return of an aggregate deficit will quickly trigger scarcity concerns,” the analysts said. “Set against a far more benign macro environment, with fading dollar headwinds and a slowing Fed hiking cycle, we expect upside price momentum to build progressively into spring.
Aluminum reached record highs soon after Russia’s invasion of Ukraine last February. It’s since slumped as Europe’s energy crisis and a slowing global economy led many smelters to curb production. Like many Wall Street banks, Goldman is bullish on commodities as a whole, arguing that a lack of investment in recent years has led to low supply buffers. It sees the asset class generating investors returns of more than 40% this year as China reopens and the global economy picks up in the second half of the year.
Malaysia Latest News, Malaysia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Goldman's economic outlook for 2023 is 'foggy'The probability of a recession in 2023 is between 45% and 55%, experts say.
Read more »
Big U.S. banks continue to add jobs as Goldman Sachs cuts staffJPMorgan Chase & Co and Bank of America Corp continued to add staff as the economy softens, even after the ranks of the five biggest U.S. lenders swelled by 100,000 since the start of 2020.
Read more »
Calendar invites and chaos: How Goldman Sachs coldly laid off 3,000 workers in a dayLaid-off bankers are griping that Goldman Sachs used chilling, underhanded tactics as it mounted this week’s bloodbath that claimed more than 3,000 employees, The Post has learned. Insiders c…
Read more »
Goldman Sachs laid off staff after scheduling 'phony' meetings: reportSome Goldman Sachs bankers were laid off after being told to attend meetings under 'false pretenses,' report says
Read more »
Goldman Sachs plans to nudge out 800 more with small bonuses: reportGoldman Sachs plans to nudge out an additional 800 staffers by skimping on bonuses after already laying off more than 3,000 employees, report says
Read more »
Goldman Sachs plans to nudge out 800 more with small bonuses: reportGoldman Sachs plans to nudge out an additional 800 staffers by skimping on bonuses after already laying off more than 3,000 employees, report says
Read more »