UPDATE 1-C.Suisse raises copper, aluminum price forecasts

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March 6 (Reuters) - Credit Suisse raised its price
forecasts for Copper MCU3 and Aluminum MAL3, saying prices
should remain high, due to supply constraints, global demand
and higher costs.

The brokerage reinstated coverage of Alcoa Inc (AA.N: Quote, Profile, Research) with
an "outperform" rating and a $45 price target, following the
aluminum producer's sale of its packaging business.

Credit Suisse also raised price target on Freeport-McMoRan
Copper and Gold (FCX.N: Quote, Profile, Research) by $20 to $130, saying with an
extensive project pipeline, the company is positioned to
deliver two year volume growth.

The brokerage said it raised its 2008 and 2009 copper price
forecasts by an average of 18 percent and aluminum price
forecasts by an average of 20 percent.

Credit Suisse, however, cut its zinc price forecast for
2008, while maintaining its view for 2009. METAL
PRICE FORECAST (per pound)

2008 2009

CURRENT PRIOR CURRENT PRIOR Copper

$3.60 $3.00 $3.50 $3.00 Aluminum $1.25
$1.10 $1.25 $1.00 Zinc $1.25 $1.40
$1.00 $1.00
(Reporting by Nachiket Kelkar in Bangalore; Editing by Anil
D'Silva)