Copper Bulls Can See A Record Price Of $12,000/t – by Tim Treadgold (Forbes Magazine – April 3, 2024)

The copper bulls are off and running once again with confidence growing that the latest price breakout will not be another false alarm.

A squeeze on supply caused by production outages such as the closure of a big copper mine in Panama is combining with strong demand to lift the price back over the $9000 per pound mark with another 22% increase to a record $11,000/lb seen as likely.

Multiple investment banks, including Citi, Goldman Sachs and Morgan Stanley have jumped aboard the copper express. But even as they recommend increased copper exposure to their clients there is an element of uncertainty because a similar set of circumstances evolved two years ago, prompting optimistic forecasts which flopped alongside the copper price.

Back in 2022 it was Goldman Sachs which led the way with a forecast of copper hitting $13,000 a ton during 2023, only for copper to do the opposite and sag to $7150/t. After that low point, copper has been steadily climbing to its latest price of $9200/t, an upward trend which is expected to continue if not as a boom but more as a steady “melt” upwards.

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