Recently, “running out of copper” has been scaring a lot of people. Due to the geological availability and development of society, copper consumption has been rising sharply. To meet the requirement, we need more mines or resources. The price of copper is highly related to supply and demand. The copper alliance said that we are short of copper; what do you think would influence the price? There is no doubt that the price would rise. According to Bank of America, the price of copper could hit $20,000 per metric ton by 2025.
According to Bank of America commodity strategist Michael Widmer, the copper store measured 15 years ago, which means our storage is less than we thought. “Linked to that, we forecast copper market deficits and further inventory declines, this year and next. With (London Metal Exchange) inventories close to the pinch-point at which time spreads can move violently, there is a risk of backwardation, driven by a rally in nearby prices, may increase.”
We have no idea how long this deficit will last. However, Bank of America announced that they expect the price of copper will reach a balance in 2023 and 2024. Before that, the price of copper may continue to go high. Let’s pay attention to this commodity moving forward.
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