UPDATE 1-Goldman Sachs raises aluminum price forecasts
April 7 (Reuters) - Goldman Sachs raised its 2008 and 2009 aluminum ALc1 price forecasts, citing supply constraints in several countries due to power shortages.
Goldman raised its price forecasts to $1.31 per pound from $1.12 for 2008 and to $1.33 per pound from $1.21 for 2009.
In a research note, the brokerage said it expects the market to be nearly balanced in 2009 as China's consumption increases by almost 20 percent.
"We continue to believe that China's supply demand balance holds the key to aluminum pricing, however increased power constraints in countries like Brazil provide upside risk to our aluminum estimates."
It also raised its price targets on Alcoa Inc (AA.N: Cotización) to $42 from $37 and Century Aluminum Co (CENX.O: Cotización) to $75 from $58 to reflect the change in aluminum estimates, but maintained a "neutral" rating on both stocks. (Reporting by Biswarup Gooptu in Bangalore; Editing by Deepak Kannan)
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