BofA Boosts Copper Price Forecast by 20% to $12,000 per Ton

Bank of America has raised its long-term forecast for copper prices by 20% to $12,000 per ton. The revised price target is equivalent to $5.44 per pound in 2026 dollars. The bank's strategists cited ongoing supply issues as the main driver behind copper's continued price strength.

The forecast adjustment comes after over a year of policy and market surprises, including risks of volatility from war in the Middle East. Bank of America noted potential risks to copper prices, including a possible energy-induced demand shock or a pause in data center capital expenditures.

In addition to the copper price increase, Bank of America made minimal other changes to its commodity forecasts. The bank lowered its 2027 aluminum price forecast by 5% to $3,625 per ton. However, higher interest rates and a stronger dollar create a bearish outlook for other commodities.