Copper prices are soaring, and analysts predict this is just the beginning. This metal, considered a leading indicator of economic growth, is facing a significant shortage due to limited supply. This creates tension in the market, especially with the weakening of the US dollar, making copper even more attractive to foreign buyers.
According to CNBC, by 2025, copper prices could surge more than 75%, reaching new historical highs. Experts at Citibank and Goldman Sachs forecast prices to rise to $15,000 per ton. The research division of Fitch Solutions, BMI, also supports this forecast, pointing to the growing demand for copper in connection with the transition to green energy and the likely depreciation of the dollar in the second half of 2024.
The situation is exacerbated by the decision of the world’s largest copper producer, Anglo American, to cut production in 2024 and 2025. In 2024, the company plans to produce 730,000–790,000 tons of copper, which is 20% less than the previous estimate. In 2025, production volumes may decrease to 690,000–750,000 tons, which is 18% less than previously planned.
Goldman Sachs analysts expect the copper market deficit to exceed 500,000 tons in 2024, and prices could reach the $15,000 per ton mark this year! Further price increases are forecasted for 2025.
Demand for copper continues to grow, and limited supply and the weakening dollar are fueling this market. Investors are closely monitoring the situation, anticipating significant profits in the coming years. Stay informed and get ready for new heights!