MARKET TALK: LME Aluminum At Risk Of Correction - Goldman

LME aluminum is at risk of a correction in the near term amid recovering alumina availability which is boosting smelting capacity, particularly in China, says Goldman Sachs. This has likely generated off-exchange inventory builds, in addition to the recent recovery in global exchange stocks, Goldman notes. But cost pressures for marginal smelters in the US, Europe and China will likely create a floor for aluminum prices above $2,200 a metric ton, while the demand outlook remains positive further forward. LME aluminum is +2 from Friday's low, at $2,870.50/ton.