Citi Research said in a report that it took a neutral stance on aluminum and zinc in the short term after seeing volatility in July and August. Both aluminum and zinc prices surged in August, in line with Citi's optimistic near-term forecast, with prices approximately 15% higher than the low levels earlier in the month.
Citi held its positive outlook on aluminum, predicting further price increases in the fourth quarter of 2024 and early 2025. The average price was expected to reach US$2,800/ton in 2025, supported by predicted cyclical recovery in global manufacturing and continued demand for decarbonization measures.
In terms of zinc, Citi kept optimistic about the medium-term outlook for zinc, predicting that the zinc price to be US$3,100/ton by the first quarter of 2025. Besides, there might be a shortage of 187,000 tons in the global refined zinc market this year, mainly due to supply-side constraints.