Bank of America Merill Lynch Bullish on Aluminum in 2015

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Bank of America Merrill Lynch, in a research note published Wednesday, forecast a bullish 2015 for aluminum and other base metals. The report states that macro-economic pressures led to substantial retracement in prices of some base metals during summer this year.

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According to the report, cyclical headwinds continue to exist for the time being. However, early signs of structural improvement in fundamentals are already visible in individual base metals. Aluminum market fundamentals are looking strong with the metal expected to shift to deficit in 2014. Bofa ML forecasts aluminum price to reach $2,010 per million tons in 2015.

Following two days of increases on the LME, the aluminum 3-month price dropped by 2.1% to end at $1,900 per metric ton on Friday, October 17. Weakening prices followed two days of improvement as the cash price of primary aluminum dropped 2.1% on the LME to $1,873 per metric ton. The Indian aluminum cash price fell 0.9% to INR 118.50 ($1.93) per kilogram.

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Chinese aluminum prices closed flat for the day. The price of Chinese aluminum scrap saw essentially no change for the fifth day in a row, remaining around CNY 12,250 ($1,995) per metric ton. For the fifth day in a row, the price of Chinese aluminum billet remained essentially flat at CNY 13,590 ($2,213) per metric ton. The price of Chinese aluminum bar remained essentially flat at CNY 14,200 ($2,312) per metric ton. The cash price of Chinese aluminum held steady at CNY 13,960 ($2,273) per metric ton.

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