Goldman Sachs Cut Copper Price Forecast for 2025

SEATTLE (Scrap Monster): The leading American multinational investment bank and financial services provider Goldman Sachs Group, Inc. has cut its copper price prediction for 2025 by over $5,000. The primary cause of the change is the expected sharp fall in Chinese demand.

RELATED NEWS:

Goldman Sachs Predicts Copper Prices to Surge 20%, Hit $12,000

Goldman Sachs Boosted End-2023 Price Forecast for LME Copper

In a note, analysts Samantha Dart and Daan Struyven said that the increasingly disappointing economic recovery in China is likely to delay an expected rally in copper prices. It is noteworthy that the bank has been a leading proponent of a positive perspective about the metal. Goldman Sachs now expects copper prices to average at around $10,100 next year, compared with a previous target of $15,000 per ton.

After rising above $11,000 per ton in May of this year, copper prices have since fallen by nearly 18%. The rising exports of the metal from China have raised concerns over falling consumption in the country- the world’s top copper consumer. The apparent copper demand in China started to shrink in March this year, thus resulting in elevated inventories.

As a result of the lower-than-expected demand and projected challenges to China's economic growth going forward, Goldman Sachs observed that analysts now have a less positive and more selective tactical view of commodities.