Citigroup cuts copper forecast on tariffs risk, China outlook
The bank has cut its short-term outlook for copper prices by 11% to $8,500 a ton over the next three months.
Aluminum prices fell to a five-week low on Wednesday due to weak demand in China and a rapid buildup of inventories in exchange warehouses.
Benchmark aluminum on the London Metal Exchange was up 0.1% at $2,411 a tonne by 1209 GMT after touching $2,387.50, its lowest since January 9.
[Click here for interactive aluminum price chart]
Aluminum stocks in LME-registered warehouses have risen to 602,150 tonnes from 375,950 tonnes in mid-January. Inventories in Shanghai Futures Exchange warehouses are at 268,984 tonnes, against 95,881 tonnes on December 30.
“Aluminium’s fundamentals remain strong and China’s demand should grow this year while its production of the metal shrinks,” said WisdomTree analyst Nitesh Shah.
“There’s a lot of potential for a very strong comeback (for prices),” he added.
(With files from Reuters)
