Max Layton, a team leader of Citi analyst, said that the aluminum prices were expected to climb by 8-10% in the next 6 to 12 months due to high production costs, raw material constraints and low inventories. Also, the limited production growth in China was expected to keep the aluminum market tight outside China.
The LME average spot price was expected to reach US$2,225/ton and US$2,350/ton in 2019 and 2020 respectively.
Layton's report showed to investors that it would constitute a stronger opportunity for consumer hedging or investor long positions if price fell to US$2,000/ton. The potential catalyst for this decline could be the easing of Russian sanctions and the rising trade tensions between the US and China or further instability in emerging markets.
Citi: Aluminum prices to rise by 8-10% in next 6-12 months
28 Sep 2018 14:04 reported by John
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