The price forecast for copper is mostly on the higher side. The first quarter of this year saw an all-time high of around $14,800 a tonne and the markets see the rates reaching this level again.
1 / 7Copper prices continue to gain. Even as most other commodities are closing this week slightly into the negative, metal prices are not. Aluminium is trading higher and so is copper.
2 / 7Mine disruptions: Various producing countries such as Peru or Chile are witnessing mine disruptions.
3 / 7Long lead times: It takes 17 years for a mine to be started — from being discovered till production comes in. In the last 20 years, no new mine has been found.
4 / 7Declining ore grades: This is the reason why miners go further down into the earth, which increases costs and decreases cost efficiency.
5 / 7Smelter pressure and supply constraint: The sulphur shortages because of the West Asia conflict, the smelter pressures, the AI boom the EV, renewables — copper is required for each of these. Supply constraints exist but the demand has been on the positive side supporting the copper prices.
6 / 7Price forecast: The price forecast for copper is mostly on the higher side. The first quarter of this year saw an all-time high of around $14,800 a tonne and the markets see the rates reaching this level again. Trading economics has put a copper target between $14,000 to $15,500 a tonne for this year. UBS has suggested $13,200 a tonne on an average. JPMorgan has put it lower at $11,200 a tonne, while Cochilco said $12,000 a tonne is where prices could average on the higher side, continuing for this year as well.
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