Citi analysts have forecasted that copper prices will rise to $14,500 per metric ton next month and potentially reach $15,000 within a year, marking a significant increase from the current benchmark price of $13,636 per ton. This bullish stance is influenced by uncertainty surrounding U.S. tariffs on refined copper imports, which are expected to be decided at the end of next month.
Analysts believe that the U.S. administration may not impose these tariffs definitively, which could support copper prices as stockpiles grow. Additionally, expectations for the reopening of the Strait of Hormuz by summer are seen as a positive factor for copper demand, which is crucial for various sectors including electric vehicles and renewable energy.
Despite the optimistic outlook, Citi warns of potential bearish risks stemming from geopolitical instability in the Middle East and the sensitivity of copper inventories to interest rates and inflation concerns. Goldman Sachs has also raised its year-end copper price target to $13,735 per metric ton, reflecting a broader positive sentiment in the market