Nonferrous metals price forecasts boosted

Copper, aluminum will be higher than previously forecasted.

By Tom Stundza -- Purchasing, 5/2/2008 8:08:00 AM

Several nonferrous metals price average forecasts for 2008 and 2009 on the London Metal Exchange (LME) have been raised by the commodity strategists at J.P. Morgan Securities because the global metalworking economy has boosted demand for copper and aluminum products above earlier forecasts. Also supporting that view is William Adams at BaseMetals.com, who expects “strong market fundamentals to end up driving metal prices” as the year progresses.

The 2008 average LME copper price forecast has been raised to $3.75/lb from prior assumptions of $3.30. The average for the first four months of this year is $3.63. JPMorgan's 2009 copper price forecast goes to $3.06/lb from $2.46. The 2008 aluminum price forecast of $1.28/lb is up from $1.13 while next year’s assumption goes to $1.21/lb from $1.08. The average for the first four months of this year is $1.27.

On the other hand, the zinc forecast was reduced to $1/lb from $1.13 this year and to 91¢ from 94¢ last year. The average for the first four months of this year is $1.09. New mining and smelting projects, developed in response to recent high metal prices, are expected to over supply the market for the coating metal.