Copper is increasingly ‘dancing to its own tune’, with prices of the red metal forecast to reach about $12,000 per tonne by 2026, say Bank of America analysts.
“The pronounced lack of new mine projects has begun to bite, constraining refined copper production and spotlighting years of underinvestment in copper exploration and development,” Widmer wrote. Copper prices surged over 15% in the past two months to reach $9,419.50 per tonne on April 8, near a 15-month high, following mine disruptions that closedThese smelters contribute to more than half of the global supply. The metal was trading at $9,363 per tonne on Thursday.
Despite potential supply constraints, the demand for copper remains strong, fuelled by investments in green technologies, a rebounding global economy, restocking efforts, and possible rate cuts.