Analysts are forecasting a significant surge in copper prices, predicting an increase of more than 75% by the year 2025. Leading financial institutions such as Citi and Goldman Sachs anticipate that copper prices could reach unprecedented highs, soaring to $15,000 per ton.
As of January 3, February copper futures were trading around $8,445 per ton on the London Metal Exchange. This forecast comes on the heels of a historic price record set in March 2023 at $10,730 per ton. In the year 2023, Almalyk Mining And Metallurgical Complex exported over $460mn worth of copper, amounting to more than 55,000 tons, at an average price of $8,500.
Considering the potential increase in copper prices, the revenue generated by Almalyk Mining and Metallurgical Complex from copper exports could surpass $825mn, excluding any additional capacity additions and other factors.
BMI, affiliated with Fitch Solutions, attributes the anticipated growth in copper prices to heightened demand for the metal, driven by the global transition to "green" energy and the potential decline in the USD in the latter half of 2024.
Goldman Sachs further projects a copper deficit of over 500,000 tons in the market for the year 2024. Analysts from the financial institution believe that copper prices might reach $15,000 per ton in the current year, with even higher quotes expected in 2025.
However, this optimistic forecast hinges on various factors, including an overall improvement in the global economic landscape. Typically, an upswing in global GDP correlates with increased demand for copper, making the demand for this metal an indirect indicator of the overall economic health.
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