Global investment bank Citigroup remains optimistic about the outlook for copper prices, maintaining its forecasts for the rest of the year as tightening global supplies continue to outweigh weaker demand.
The bank reaffirmed its short-term price target of $14,500 per metric ton over the next three months and expects copper to reach $15,000 per metric ton by year-end.
Copper futures on the London Metal Exchange were trading at around $13,770 per metric ton, remaining close to record levels.
According to Citi analysts, the physical copper market is becoming increasingly constrained, particularly outside the United States.
The bank noted that declining visible inventories, especially in China, alongside rising Chinese import demand, point to tighter supplies rather than stronger consumption.
Although global demand growth has remained modest, Citi believes supply shortages are providing enough support to keep prices elevated.
The report also highlighted ongoing challenges affecting copper production worldwide.
Mine output remains under pressure in several regions, while higher prices have not yet encouraged a significant increase in recycled copper entering the market. This limited response from the scrap industry has further tightened available supply.
Citi added that potential production risks in Chile—the world’s largest copper producer—as well as constraints involving sulphur supplies used in processing, could provide additional support for prices in the months ahead.
Despite weaker sentiment across broader commodity markets and a slowdown in speculative trading activity, copper prices have remained resilient.
The bank believes this reflects the strength of underlying market fundamentals, with constrained supply continuing to offset softer demand and helping to sustain high prices through the remainder of the year.
Main Image: Mining.com
