1. Goldman is particularly bullish on copper, predicting a “12% upside for copper on a six-month horizon and reiterat[ing] our long copper trade recommendation ”. The US investment bank also maintains its long zinc recommendation , predicting a 10% expected upside on a 12-month basis. It forecasts year-end copper prices of $8,567/ton, up from $7,991 on January 13; $2,321 for aluminium (up from $2,114) and $2,104 for zinc (up from $1,954).
2. Nevertheless, despite this apparently sunny outlook, Goldman has in fact revised down significantly its previous annual price forecasts for 2012, which were released in October 2011, before the sharp fourth-quarter declines, which it failed to predict.
3. Bank of America-Merrill Lynch projects year-end copper prices at $7,750/ton; aluminium at $2,275 and zinc at $2,075, for example. Its 2012 GDP forecasts for China – 8.6% - is also very much at the higher end of analyst expectations – many other projections plot GDP growth as being much closer to the 8% mark this year.