Barclays cuts 2013 average Aluminum price forecast

LONDON (Commodity Online): Barclays Capital lowered its fourth quarter price forecast for aluminum to $1,950 a metric ton and their 2013 average to $1,988 a ton.

According to the British bank, they trimmed the price forecast due to aluminum market is in “such a large surplus that even an upswing in demand is unlikely to make much of a dent (in supplies).”

It cautions that other markets that have a relatively tight balance sheet like copper, tin and lead could rise swiftly.

“Global growth expectations are extremely weak so we would caution that even a small improvement in activity data could take the market by surprise,” Barclays concluded.