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Production cost key determinant for aluminium prices: RBC Capital
Edited by : AL CIRCLE
1 min read
The marginal cost of production will be a key determinant for aluminium prices for the next three years, RBC Capital Markets said in a research note Tuesday.
As part of its first-quarter outlook, the Canadian investment bank believed that due to high inventory levels and low capacity utilization rates, production costs would remain an important feature of the aluminum market.
"We expect inventories to remain above critical levels throughout our forecast period, limiting upside price potential," the bank said.
RBC Capital expects supply growth of 5.4% in 2012 and 7.1% in 2013.
This will put forecast global production at 45,962 million mt in 2012 and 49,224 million mt in 2013.
As part of its first-quarter outlook, the Canadian investment bank believed that due to high inventory levels and low capacity utilization rates, production costs would remain an important feature of the aluminum market.
"We expect inventories to remain above critical levels throughout our forecast period, limiting upside price potential," the bank said.
RBC Capital expects supply growth of 5.4% in 2012 and 7.1% in 2013.
This will put forecast global production at 45,962 million mt in 2012 and 49,224 million mt in 2013.
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