Copper prices rise for third straight week as sector gears
up for big investment inflows, analysts believe

Angela Harmantas | Fri 16 Jun 2023

Copper could see “unprecedented” investment inflows as investors eye electric vehicle and renewable energy opportunities, Citigroup said this week.

The investment bank has predicted a huge influx of investment in the copper market in the coming years, driven by the growing demand for electric vehicles (EVs) and renewable energy sources.

According to Max Layton, Citi's managing director for commodities research, the current subdued price of copper presents an ideal opportunity for investors to buy, as concerns over a global recession have kept the metal's price muted.

Copper is currently trading at around $8,300 per ton, down approximately 26% from its peak of nearly $11,300 in October 2021.

But Layton believes that copper could potentially reach $15,000 per ton by 2025, a surge that would dwarf the 2008 bull run of oil.

The metal may experience short-term dips, but Citi expects a rally in the next six to 12 months as the market fully recognizes the significant supply-demand imbalance, which is expected to widen with the increasing demand for EVs and renewables.

For now, copper is poised to rise for a third straight week, notching its longest winning streak since mid-January.


Link:
Copper prices rise for third straight week as sector gears up for big investment inflows, analysts believe (*.com)