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Goldman cuts aluminum forecast on weaker developed economies
Edited by : AL CIRCLE
1 min read
Goldman Sachs Group Inc lowered its estimates for aluminum prices through 2013 citing weaker growth in developed economies.
Analyst of Goldman Mr Sal Tharani and Mr Sandeep SM said that the metal will trade at USD 1.18 a pound next year down from a previous forecast of USD 1.28 and before rebounding to USD 1.22 in 2013 below an earlier estimate of USD 1.30. The 2011 forecast was lowered to USD 1.16 from USD 1.18.
Aluminum has the highest beta to global economic growth and thus could be most impacted by macro weakness. We do not expect a major leg down in aluminum price as it is already trading at close to its marginal cost.
Analyst of Goldman Mr Sal Tharani and Mr Sandeep SM said that the metal will trade at USD 1.18 a pound next year down from a previous forecast of USD 1.28 and before rebounding to USD 1.22 in 2013 below an earlier estimate of USD 1.30. The 2011 forecast was lowered to USD 1.16 from USD 1.18.
Aluminum has the highest beta to global economic growth and thus could be most impacted by macro weakness. 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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