Goldman Sachs expects copper prices to rise by 65% by 2025
With the intensifying global copper ore supply shortage and news of a potential reduction in production in China, copper prices recently approached their highest level since January last year.
Especially, the world's largest copper producer, Codelco, is facing the challenge of its lowest production in 25 years, while the production decline of Ivanhoe Mines Ltd. and the drought situation in Zambia have further exacerbated the supply shortage.
According to a report released by Goldman Sachs last Thursday, analysts predict that a significant deficit will emerge in the copper market starting from the second quarter, entering a deficit phase in the second half of the year. The report once again emphasized Goldman Sachs' bullish forecast for copper prices, expecting a 65% increase by 2025.
Global manufacturing is showing signs of a slow recovery, enhancing expectations of tightening conditions in the copper market. In addition, Chinese smelters account for more than half of the global refined copper production, and are considering reducing production as processing costs approach zero.
Copper prices on the London Metal Exchange fell by 1.1% at 11 am Singapore time on Friday to $9,252 per ton, despite a more than 4% increase in prices this week. However, as all base metal prices fall, copper prices are also affected.
The market is awaiting US non-farm payroll data, which may show strong economic activity and could prompt the Federal Reserve to maintain a high interest rate policy for an extended period. Singapore iron ore futures prices fell for the third consecutive day, dropping by 0.7% to $97.05 per ton