Copper Prices to Hit Record Highs by 2025, as Deficit Looms

The COP28 resolution to triple global renewable energy capacity by 2030 will provide big boost to copper demand, said Citibank.

SEATTLE (Scrap Monster): The latest BMI research report indicates that copper prices are expected to surge higher by more than 75% over the next two years to hit record highs by 2025. The soaring demand driven by renewable energy push, mining supply disruptions and anticipated fall in U.S. dollar during the second half of the year will lift copper prices to fresh highs.

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A possible rate cut by US Fed may weaken the dollar, thus making the dollar-denominated copper metal attractive to foreign buyers.

Bank of America (BofA) Securities cites that the positive view on copper is mainly based on macro factors such as likely US Fed rate cuts and weaker dollar.

The COP28 resolution to triple global renewable energy capacity by 2030 will provide big boost to copper demand, said Citibank. The ambitious renewable energy targets are expected to boost copper demand by additional 4.2 million tons by the end of the current decade. The boosted demand will push copper prices to $15,000 per ton by 2025, significantly higher than the previous year peak of $10,730 per ton touched in March 2023.

Meantime, Goldman Sachs expects copper prices to jump, triggered by mining disruptions. It expects copper to record a deficit of over half a million tons during the current year. The leading investment banking company foresees copper prices hitting $10,000 per ton in 2024, with much higher levels expected in 2025.

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