Copper Prices Poised for Surge Amid China Demand, Supply Disruptions

Analysts at Citi are predicting a rise in copper prices due to tightening physical markets in China and global supply pressures. They forecast copper prices to strengthen, targeting $14,500 per tonne in three months and $15,000 by the end of 2026.

The analysts point out that despite weaker commodity markets, copper prices remain resilient due to falling inventories outside the US and increased Chinese import demand.

Supply disruptions from severe weather in Chile and reduced scrap availability following a VAT fraud crackdown in China add to the supply constraints. RBC Capital Markets also notes rising copper prices and premiums, highlighting increased competition among Chinese buyers and supply challenges from key mining operations in Chile.