BofA Raises Copper Forecast to $12,000 per Ton Amid Supply Concerns

Bank of America (BofA) has raised its long-term copper forecast to $12,000 per ton by 2026, a 20% increase from previous estimates. This prediction is based on ongoing supply issues that are driving up the price of copper. The bank's strategists cited these supply challenges as the main factor behind copper's continued price strength.

The adjustment comes after more than 12 months of policy and market surprises, with risks of volatility persisting from potential energy-induced demand shocks or pauses in data center capital expenditures. BofA made minimal changes to its commodity forecasts, lowering its aluminum price forecast by 5% to $3,625 per ton for 2027.

Despite the raised copper forecast, higher interest rates and a stronger dollar create a bearish outlook for prices, according to Bank of America strategists. The bank's commodities update report highlights ongoing market uncertainty and potential risks to commodity prices.