{"id":246737,"date":"2024-05-22T12:50:44","date_gmt":"2024-05-22T12:50:44","guid":{"rendered":"https:\/\/www.techopedia.com\/?post_type=news&p=246737"},"modified":"2024-05-22T12:50:44","modified_gmt":"2024-05-22T12:50:44","slug":"copper-prices-reach-record-highs-expert-insights-on-future-trends","status":"publish","type":"news","link":"https:\/\/www.techopedia.com\/news\/copper-prices-reach-record-highs-expert-insights-on-future-trends","title":{"rendered":"Copper Prices Reach Record Highs: Expert Insights on Future Trends"},"content":{"rendered":"
Copper price touched the highest levels ever on May 20. It crossed the $11,000<\/a> mark in intra-day trading. The metal has gained 35% this year.\u00a0<\/strong><\/p>\n Copper<\/a> is the third most used<\/a> metal in the world, used in everything from homes to high-tech equipment. Growing copper demand is often taken as an indicator of a growing economy and industrial demand. Recently, brown metal has touched new highs as investors hope for macroeconomic growth, with expectations of interest rate cuts by the Fed and more stimulus from China at the top of the list.<\/p>\n The use of copper has increased from 10 million metric tons in the 1980s to 26.5 million tons in 2023. Asia claims its largest share, i.e. 70%. In 2023, the total size of copper markets was 26.5 million metric tons (MT) and had a 162,000MT surplus in 2024.<\/p>\n But so far, the supply has been lower <\/a>than expected. Expectations of a shortfall triggered by restrictions in iron ore supply have further added to the concerns, buoying the prices even further.<\/p>\n One of the biggest pushes has come from the Comex squeeze<\/a> at the New York futures, which has resulted in investors rushing to secure copper contracts for July delivery.<\/p>\n Analysts at Morgan Stanley<\/strong> recently said that while we can expect volatility in copper prices moving forward there is still upside<\/a> to it. They further highlighted that physical markets for copper show some tightening as inventories in the U.S. remain low.<\/p>\n As such, Morgan Stanley expects prices to touch $13,125 per ton as their bull case and a price of $10,500 per ton as a base case. Jeff Curries, former Goldman Sachs and chief strategy officer at Energy Pathways, declared copper as the new oil<\/a> and is also bullish on the metal.<\/p>\n Citi bank<\/strong> echoes these sentiments saying that it has entered its second bull run<\/a> as demand for decarbonization and energy transitions ramps up.<\/p>\n Bank of America<\/strong> has already warned of a copper supply crisis<\/a> and expects prices to average around $10,750 per ton in 2025 going all the way to $12,000 per ton in 2026.<\/p>\nWhat Happened to the Copper Market?<\/span><\/h2>\n
Experts on Copper Price<\/span><\/h2>\n