BofA Boosts Copper Forecast to $12,000 per Ton Amid Ongoing Supply Issues

Bank of America (BofA) has raised its long-term copper forecast to $12,000 per ton by 2026. This represents a 20% increase from their previous estimate. The bank's strategists point to ongoing supply issues as the main driver behind copper's continued price strength.

The adjustment comes after over a year of policy and market surprises, with risks of volatility persisting due to the war in the Middle East. Potential risks include an energy-induced demand shock or a pause in data center capital expenditures.

BofA also made minimal changes to its other commodity forecasts. The bank lowered its 2027 aluminum price forecast by 5% to $3,625 per ton and expects a bearish outlook for gold prices due to higher interest rates and a stronger dollar.