NEW YORK (Commodity Online): Goldman Sachs has cut their price forecast for Copper, Nickel and Zinc for 2012 due to the prospect of increased supplies.
Copper price has been forecasted at $900/tonne over the next 12 month period. This is an over 5% drop from the previous $9500/tonne. Nickel prices are estimated to be $18,600/tonne and Zinc is calculated to be around $2200/tonne. Aluminium price forecast of $2400/tonne remained unchanged.
“The direction of our base-metals views is largely unchanged. We are most bullish on copper, moderately bullish on aluminum and zinc, and bearish on nickel” the report said.
“We expect the copper market to tighten into the middle of the year on the back of an end to destocking in Europe and a policy-induced acceleration in Chinese demand, which will take copper prices back to $9,000 (per tonne)” the report said while adding that Demand will exceed supply by about 200,000 tons this year.
LME copper is currently trading below $8000/tonne.
