Goldman Sachs Boosted End-2023 Price Forecast for LME Copper

SEATTLE (Scrap Monster): Goldman Sachs has been steadily maintaining bullish price outlook on copper during the year. The prices of the metal have recorded bullish trend, much in line with the forecast.

The leading global investment banking company has lifted its year-end forecast for LME copper to $12,000 per ton, significantly higher by 21% upon comparison with the current prices. It foresees further gains by nearly 50% in 2025. This would roughly correspond to a price of $5.40 per lb and $6.75 per lb in 2024 and 2025 respectively.

The full year forecast for average price has been raised from previously announced $9,200 per t to $9,800 per t. According to Goldman Sachs, the latest supply demand estimates suggest a metal deficit of 454kt in 2024 and 467kt in 2025, compared with earlier deficit forecasts of 428kt and 413kt respectively in 2024 and 2025 respectively.

Goldman Sachs noted that the copper market’s journey to scarcity has gathered significant momentum so far this year with concentrate segment falling into severe tightness. The visible stocks stand just over 6,000 kt, with possibilities of further market tightening during the second half of the year. In the near term, the market may likely witness price consolidation phase, must it will be only for a relatively brief period.

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