Copper prices will rocket to record levels in the next 12 months, according to Goldman Sachs, as a looming supply shortage coincides with growing demand, keeping the physical market for the metal in deficit in 2023.
The broker now forecasts that the copper market faces a 178,000 tonne deficit next year, compared to its previous forecast for a 169,000 tonne surplus. But in November, the metal recorded its biggest monthly advance since April 2021, surging nearly 11 per cent on the London Metal Exchange as China began loosening virus restrictions.
Goldman Sachs forecast that prices will exceed their record high in the next year, increasing its 12-month price target to $US11,000 a tonne from $US9000 a tonne.The expectation of tighter market conditions reflects Goldman’s 434,000 tonne cut to its global mine supply forecasts for next year, which was largely due to lower guidance from operations in Chile.