Foreign media November 27 news: Aluminum futures on the London Metal Exchange rose on Monday, partly because Goldman Sachs Group remains bullish on aluminum prices, predicting that global supply shortages will widen in 2024 due to supply constraints in China.
Nicholas? Goldman Sachs analysts led by Edward Snowden wrote in a report dated Nov. 26 that the tightening global aluminum supply outlook mainly reflects the impact of tight supply in China.
As China reaches its capacity ceiling, coupled with winter production cuts in Yunnan, it means that global primary aluminium production is likely to grow by only 2% year-on-year next year. The investment bank expects a global primary aluminum supply deficit of 1.23 million tons next year, almost double the shortfall in 2023.
Goldman Sachs expects aluminium prices to rise to $2,600 a tonne in the next 12 months.
Aluminum on the London Metal Exchange rose 0.6 percent to $2,228.50 a tonne as of 7:31 a.m. local time.
Industrial metals have rallied in recent weeks as China, the biggest consumer, has stepped up efforts to support the property sector.
Prices have also been supported by ongoing restrictions on aluminium production in China due to winter power shortages and capacity caps at Chinese smelters, which account for more than half of global supply.
