Morgan Stanley raises aluminum price forecast for 2015

Morgan Stanley, a multinational finance corporation, raised its forecast for aluminum prices in 2015 by 8 percent and this year by 3 percent. This is due to an increase in the use of aluminum in the automotive and other industries around the world, and especially in the United States. In addition, Morgan Stanley believes that the supply of aluminum is likely to decline as producers cut production.

According to the latest report, the price forecast for this year has been increased to $ 1,893 per tonne, up 3 percent from the previous forecast. In addition, the price of aluminum will touch $ 2072 per ton in 2015. The report also states that the global aluminum market expects 230 thousand tons of deficit in 2017.

The decline in production, coupled with high growth in demand, guarantees a bright future for the metal. Global aluminum demand is expected to grow 6.6 percent in 2014 and 7.4 percent in 2015, driven mainly by rising demand from the US auto industry and strong growth in consumption in China. Ford's increased use of aluminum in the F150 will boost demand in the near term, which is "a boon for aluminum demand." Another car manufacturer Toyota has already announced plans to use more aluminum in the 2018 Camry.

Morgan Stanley also raised its current forecast for nickel and zinc prices by 2 percent. The 2015 copper price forecast was cut 3 percent to $ 7,176 per tonne.