Citigroup Cuts Short-Term Price Outlook for Copper

Consequently, the prices of the commodity are expected to drop to $8,500 per ton over the next three-month period.

SEATTLE (Scrap Monster): Due to predicted demand difficulties brought on by an anticipated increase in U.S. trade tariffs and weaker-than-expected Chinese stimulus measures, Citigroup Inc. lowered its short-term price prediction for copper.

Trump's ascension to a second term will mark a sea change in international trade tariff policy, according to Citigroup analysts.

Furthermore, the Chinese government's present economic stimulus plan is not enough to boost demand for physical copper. Concerns about the Chinese government's lack of financial support have contributed to the recent decline in metal prices. The state research body predicts that by the end of the current decade, Chinese copper consumption will likely reach its peak and demand growth will decelerate.

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As a result, throughout the next three months, the commodity's prices are anticipated to decline to $8,500 a ton. They stated that this is an almost 11% decrease from the earlier price prediction of $9,500 per ton.

The dollar has recovered as a result of expectations for possible inflationary policies meant to restrain rate decreases. Commodities priced in that currency are typically under pressure as the dollar gains strength. It should be mentioned that since late September of this year, copper prices have already dropped by about 10%.

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