Citi Stands Firm on Copper Price Targets Amid Global Supply Pressure

Citi maintains its bullish copper price predictions due to supply pressure and physical market constraints. The bank has held onto its $14,500 per metric ton zero- to three-month target and its $15,000 per ton year-end target.

The London Metal Exchange's benchmark copper price is currently trading near $13,770 a ton in official rings. Citi notes that demand growth remains slow while supply is under greater pressure globally, particularly in China.

Lower visible inventories outside the US, especially in China, and increasing Chinese import demand are indicative of underlying physical constraints, according to Citi. Mine supply is also facing challenges worldwide, with a soft response from the scrap market so far this year.