BofA Sees Copper Soaring to $12,000 per Ton by 2026 Amid Supply Fears
Bank of America (BofA) strategists have revised their long-term copper price forecast, predicting it will reach $12,000 per ton by 2026. This represents a 20% increase from their previous estimate and comes on the back of ongoing supply issues in the market.
The bank cited continued supply challenges as the main driver behind copper's sustained price strength. BofA strategists noted that policy and market surprises over the past year have contributed to this trend, with risks persisting due to potential volatility from conflicts in the Middle East.
However, the bank also highlighted some potential headwinds for prices, including a possible energy-induced demand shock or a pause in data center capital expenditures. Additionally, higher interest rates and a stronger dollar are seen as bearish factors for commodity prices.
It's worth noting that BofA made minimal other changes to its commodity forecasts, with the exception of lowering their 2027 aluminum price forecast by 5% to $3,625 per ton.