ABARE forecasts aluminium price to rise 13% in 2009

The Australian Bureau of Agricultural and Resource Economics (ABARE) forecasts the aluminium price to rise by 13% to an average $3,200/t next year from a forecast average of $2,830 this year.

ABARE’s price forecasts are based on a calculation that there will be a global production-consumption surplus of 398,000t this year, switching to a deficit of 255,000t next year.

As such, global stocks are expected to shrink from 4.9 weeks’ worth of consumption at the end of this year to 4.2 weeks at the end of 2009.

Source: MetalsInsider