Reuters
Goldman cuts 3-month price targets for base metals
Edited by : AL CIRCLE
1 min read
U.S. investment bank Goldman Sachs on Monday lowered its 3-month price targets for base metals, citing weaker than expected consumption and a stronger U.S. dollar against the euro.
Recent trips across North America confirmed a near complete lack of conviction in the very short-term outlook for metals prices, with market participants generally paralysed by the banking and sovereign crisis in Europe, Goldman said.
Views on the outlook for Chinese metals demand in 2012 were polarized, with many expecting a continuation of weakness in the housing sector and policy easing, the bank added.
Goldman cut its 3-month price targets on copper to $8,000 per tonne, aluminium to $2,200 per tonne, nickel to $17,000 per tonne and zinc to $1,950 per tonne.
In the second half of 2012 Goldman expects the copper market to remain roughly balanced and aluminium to tighten at current prices as global supply growth remains constrained in a growing demand environment. It expects zinc and nickel to underperform in the second half of the year.
The bank also opened a long September 2012 aluminium $2,150 per tonne strike call trade.
Recent trips across North America confirmed a near complete lack of conviction in the very short-term outlook for metals prices, with market participants generally paralysed by the banking and sovereign crisis in Europe, Goldman said.
Views on the outlook for Chinese metals demand in 2012 were polarized, with many expecting a continuation of weakness in the housing sector and policy easing, the bank added.
Goldman cut its 3-month price targets on copper to $8,000 per tonne, aluminium to $2,200 per tonne, nickel to $17,000 per tonne and zinc to $1,950 per tonne.
In the second half of 2012 Goldman expects the copper market to remain roughly balanced and aluminium to tighten at current prices as global supply growth remains constrained in a growing demand environment. It expects zinc and nickel to underperform in the second half of the year.
The bank also opened a long September 2012 aluminium $2,150 per tonne strike call trade.
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