Copper price could hit US$17,000/t by 2025 as demand soars
Analysts reckon the commodity could outperform this decade
On the pricing front, back in September, the Bank of America’s independent analyst lifted its price target for the metal beyond US$10,000/t for 2025.
And by the time October rolled round, the price had powered past that magical US$10,000/t mark thanks to China’s stimulus announcement in October.
But we could see prices surge even further, since producers Chile and Peru have stagnated and are looking down the barrel of long approval timeframes and the supply side looks set to struggle to catch up to demand.
Demand for copper is going gangbusters. The consensus is that we’ll see big shortages for the red metal due to rising demand for poles and wires to service renewables, electric vehicles, urbanisation and AI.
By 2050, BHP (ASX:BHP) predicts copper demand will rise 70% to 50Mt, with the energy transition accounting for 23% of demand and digital applications making up 6%.
At the time of writing the three-month LME copper contract was priced at US$9052.50.
What was our payback period? 2.67 years with copper at Us$4 lb.
CLA Price at posting:
1.0¢ Sentiment: Buy Disclosure: Held
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