Aluminum will average $1,600 a ton this year, according to Fitch Solutions, which cut its forecast from $1,850 as demand prospects weaken.
- Global consumption will decline 1.1% this year due to disruption from pandemic, especially closures of major car manufacturers, according to note
- Demand in China will fall 2%
- NOTE: LME aluminum last traded at $1,470/ton; YTD average $1,644
- Fitch expects surplus for most metals in 2020, as deep global recession spurs sharp decline in physical demand
- Demand should recover in 2H, but “the coronavirus situation remains fluid and we see significant risks to this view”