Goldman Sachs: Rusal shock may drive aluminium to US$3,000

Rally has legs: Aluminium ingots are seen stored at the foundry shop of the Rusal Krasnoyarsk aluminium smelter in Krasnoyarsk, Siberia. Goldman Sachs sees the metal rally still having some way to go. — Reuters

MUMBAI: Goldman Sachs Group Inc says that the extraordinary rally in aluminium unleashed by US sanctions against United Co Rusal may have way, way further to go, forecasting the metal may spike to US$3,000 a tonne, while raising the possibility of further curbs against Russian coal supplies.

The metal may surge to between US$2,800 and US$3,000 in the near term as the US moves against the second-largest producer have “dramatically affected” the market, the bank said in a note received yesterday as it boosted price predictions for three, six and 12 months. The US$3,000 target is 25% above Tuesday’s close, and almost 50% above the price before the curbs.