01 SEPTEMBER 2011worldal
Goldman Cuts Aluminum Forecast on Weaker Developed Economies
Edited by : AL CIRCLE
1 min read
Goldman Sachs Group Inc. (GS) lowered its estimates for aluminium prices through 2013, citing “weaker” growth in developed economies.
The metal will trade at $1.18 a pound next year, down from a previous forecast of $1.28, and before rebounding to $1.22 in 2013, below an earlier estimate of $1.30, Goldman analysts Sal Tharani and Sandeep SM said in a report dated today. The 2011 forecast was lowered to $1.16 from $1.18.
Aluminium has the highest “beta” to global economic growth, and “thus could be most impacted by macro weakness,” the analysts wrote. “We do not expect a major leg down in aluminum price as it is already trading at close to its marginal cost.”
The metal will trade at $1.18 a pound next year, down from a previous forecast of $1.28, and before rebounding to $1.22 in 2013, below an earlier estimate of $1.30, Goldman analysts Sal Tharani and Sandeep SM said in a report dated today. The 2011 forecast was lowered to $1.16 from $1.18.
Aluminium has the highest “beta” to global economic growth, and “thus could be most impacted by macro weakness,” the analysts wrote. “We do not expect a major leg down in aluminum price as it is already trading at close to its marginal cost.”
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