BofA Lifts Copper Forecast Amid Supply Chain Pressures

Bank of America strategists have raised their long-term forecast for copper prices by 20% to $12,000 per ton. This increase is attributed to ongoing supply issues that are driving up the price of copper.

The bank's commodity update report cited policy and market surprises over the past 12 months as contributing factors to copper's continued price strength.

However, Bank of America also highlighted potential risks to copper prices, including a possible energy-induced demand shock or a pause in data center capital expenditures.

In other changes to its commodity forecasts, the bank lowered its 2027 aluminum price forecast by 5% to $3,625 per ton. Despite this, higher interest rates and a stronger dollar are seen as bearish for prices overall.