Copper Prices Plummet Amid Global Headwinds

Copper prices have taken a hit in recent weeks, with the London Metal Exchange (LME) futures experiencing its steepest weekly drop since May. The decline comes despite Deutsche Bank's forecast of a 50% rally for the metal.

The slide is attributed to several factors, including oil gains tied to the Iran war and a stronger US dollar. Data from China, the world's largest copper consumer, also points to slower industrial profits growth in August.

Analysts at Deutsche Bank believe that supply constraints will help propel copper prices higher, with a target of $22,050 per ton by 2027. The bank estimates that China holds 2.05 million tons of copper in strategic reserves and expects 1.3 million tons to be stored in American warehouses by year-end.