Goldman: Aluminum-price outlook more positive
Optimism over the outlook for aluminum prices is growing, with the metal’s demand prospects turning increasingly positive at a time when production capacity is being reined in, Goldman Sachs said Tuesday.
Market participants are hopeful of better demand from the aerospace industry, with growth of around 10% expected on a global basis this year, while they also appear mildly bullish on demand from the U.S. automotive sector, which is forecast to grow by 5%-10% in 2012, the U.S. investment bank wrote in a note.
There is also cautious optimism over the outlook for consumption by the U.S. construction sector, which is “no longer expected to be a drag on aluminum demand,” the bank said.
“Short term order books for the first quarter [are] generally full, although visibility beyond [that] is low,” Goldman Sachs said.
The price of aluminum on the London Metal Exchange has been rebounding this month after sliding to a 17-month low in December. At 1151 GMT, the metal traded flat at $2,238 a metric ton. – MarketWatch
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