Experts Predict Copper Prices Set To Soar Over 75% By 2025, Thanks To Renewable Energy Transition, Supply Disruptions
The price of copper is expected to rise by over 75% by 2025, driven by supply disruptions and increased demand for the metal, largely due to the global shift towards renewable energy. What Happened: The increasing demand for copper, partially fueled by the global transition to green energy, is projected to drive up its price, CNBCreported on Wednesday. Factors such as potential U.S. Federal Reserve rate cuts, a weakened U.S. dollar, and the recent pledge by more than 60 nations at COP28 to triple global renewable energy capacity by 2030 are contributing to this forecast.
These factors combined are expected to push copper prices to an estimated $15,000 a ton in 2025, a substantial increase from the record high of $10,730 per ton reached in March 2023. The report suggests that this prediction is contingent on a smooth economic recovery in the U.S. and Europe, as well as ongoing investments in the energy transition sector.
Analysts are also optimistic about the future of copper. Goldman Sachs anticipates a deficit of over half a million tons in 2024 due to mining disruptions, which could drive prices to $10,000 per ton by the end of the year and even higher in 2025.
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