Bank of America Merill Lynch cut its price forecasts for aluminium for this year and 2016, citing a global supply glut fuelled by increasing output from China. The bank revised down its 2015 average aluminium price forecast by 3.3 percent to $1,742 per tonne for 2015, and by 3.4 percent to $1,788 a tonne in 2016. Chinese smelters have increased output, thereby flooding the domestic market and some of the oversupply has translated into exports, BofA analysts said in a note dated June 29 and released on Thursday.
Aluminium is back to a multiyear bear trend, following a brief rally last year, the bank said. BofA also slashed its 2015 average nickel price outlook by 8.1 percent to $13,986 per tonne, and its 2016 view by 4.8 percent to $17,250 a tonne, mainly on expectations of elevated imports into China.
The bank revised its 2015 average copper price forecast up slightly, saying that while prices could recover due to monetary easing measures unveiled by top consumer China, any sustained price rally is unlikely. BofA raised its 2015 average copper price outlook to $5,792 per tonne from its previous view of $5,784. It kept its 2016 price view unchanged.
Comments
Comments are closed.