Citigroup: Optimistic outlook for zinc and aluminum prices

Recently, the internationally renowned investment bank Citi Research released positive predictions on the future 

trends of the metal market, especially zinc and aluminum. The agency stated in its report on Wednesday that due

 to supply side constraints and the recovery of manufacturing confidence, zinc prices are expected to reach a new 

high of $3100 per ton in the fourth quarter or early 2025, while aluminum prices will also resume an upward trend 

during the same period.

Citigroup pointed out that global zinc ore production growth is limited, and some mines are facing production 

bottlenecks, resulting in a sustained tight supply of zinc. At the same time, as the global economy gradually recovers

 from the pandemic, manufacturing activities are accelerating their recovery, especially with a significant increase

 in demand for zinc in areas such as new energy vehicles, construction, and infrastructure. This supply-demand 

contradiction will further push up zinc prices, maintaining a strong growth momentum in the coming period.

Similar to the zinc market, the aluminum market also shows positive growth prospects. Citi Research believes that 

aluminum, as a key material widely used in multiple industries, will continue to grow in demand as the global 

economy recovers. Especially in the field of new energy vehicles, aluminum materials are favored due to their 

excellent properties such as lightweight and corrosion resistance, further driving the demand growth in the

 aluminum market. In addition, the relatively stable supply side of the aluminum market also provides strong 

support for price increases.

In terms of specific price forecasts, Citigroup Research maintains its forecast for LME aluminum and zinc futures

 prices for 0-3 months unchanged. Among them, the target price for aluminum futures remains at $2500 per ton,

 while the target price for zinc futures is set at $2800 per ton. This prediction not only reflects Citigroup Research's

 in-depth analysis of the current market situation, but also provides important reference for other market participants.

The optimistic forecast from Citigroup Research is highly consistent with the overall trend of the current metal market. 

Although the market may experience fluctuations in the short term due to various factors, in the long run, the recovery 

and growth trend of the metal market is irreversible. Especially with the further recovery of the global economy and the 

rapid development of emerging industries, the future prospects of the metal market will be even broader.