PRECIOUS METALS | Bank of America Revises Aluminum and Zinc Price Forecasts Amid Middle East Supply Disruptions

Bank of America has adjusted its aluminum price target, moving the forecast of $4,000 per ton from the second quarter of 2027 to the fourth quarter of 2026 due to damage to smelters in the Middle East. According to Jin10, analyst Michael Widmer from the bank also raised the long-term price expectations for aluminum. Additionally, Bank of America increased its average zinc price forecast for 2026 by 13% to $3,309 per ton, citing tight market supply. Widmer noted that adjustments for other metals were minor. He added that while the Middle East conflict might impact both metal demand and supply, the demand shock is not significant enough to alter the current baseline supply-demand balance.