08 AUGUST 2011alu
Aluminum to outperform copper
Edited by : AL CIRCLE
1 min read
Deutsche Bank looks for Aluminium to outperform copper. Overall, the base-metals complex is lower for the year to date due to European debt fears and U.S. macroeconomic data, the bank says.
The “one area of hope” for Copper and aluminum is much demand is driven by China, particularly public-sector housing construction. “In the near term, we believe that aluminum could outperform copper in an environment where global growth is under attack,” Deutsche Bank says. “We believe downside risk for aluminum is limited as it is trading relatively close to marginal cost and recent power shortages in China could also provide support.”
The bank looks for aluminum to average $2,650 a metric ton in the third quarter and $2,800 in the fourth. It looks for $9,500 Copper in the third quarter and $9,900 in the fourth.
The “one area of hope” for Copper and aluminum is much demand is driven by China, particularly public-sector housing construction. “In the near term, we believe that aluminum could outperform copper in an environment where global growth is under attack,” Deutsche Bank says. “We believe downside risk for aluminum is limited as it is trading relatively close to marginal cost and recent power shortages in China could also provide support.”
The bank looks for aluminum to average $2,650 a metric ton in the third quarter and $2,800 in the fourth. It looks for $9,500 Copper in the third quarter and $9,900 in the fourth.
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