UBS ups copper, zinc, nickel 2009 price estimates

LONDON, April 17 (Reuters) - UBS has upgraded its price estimates on LME copper, nickel and zinc, on growing confidence of a demand recovery in China, and downgraded its aluminium price estimates due to an over-supplied market. UBS ( UBS - news - people ) raised its 2009 price estimates on copper to 165 U.S. cents per lb versus its previous estimate of 130 U.S. cents per lb. BuzzIt raised its nickel 2009 forecast to 476 U.S. cents per lb from 400 cents per lb, while upgrading zinc forecasts for 2009 to 55 U.S. cents per lb from 45 cents. 'Given fiscal and monetary stimuli in China, there is growing confidence that a recovery is under way in the region,' UBS said in the note. 'Furthermore, industry costs have remained quite high, supporting prices at relatively high levels. Largely on the back of these factors, we have raised the price deck for copper, nickel and zinc, for 2009 and 2010.' UBS cut its aluminium forecasts for this year to 66 U.S. cents per lb from 75 cents. 'The inventory overhang and recent subsidies offered to Chinese aluminium smelters indicates that deflationary pressure is likely to remain in place for this metal over the balance of the year,' the note said of aluminium. UBS held its 2009 estimates for gold and silver at $1,000 an ounce and $14.8 an ounce, respectively, while raising its 2009 estimates on platinum to $1,100 an ounce from $1,050 an ounce.