Citi: Copper Market Poised to Witness Unprecedented Inflows

SEATTLE (Scrap Monster): According to Citigroup, the copper market is expected to witness unprecedented inflow in the coming years. The inflow will be mainly on account of investors seeking to profit from its anticipated surge in value. Citigroup predicts value growth to be driven by rising demand for electric vehicles and renewable energy.

According to Max Layton, Managing Director for Commodities Research, Citigroup, this is the ideal time for investors to buy copper, as the metal’s prices still remain muted on global recession concerns. The copper prices are currently trading at around $8,300 per ton, significantly down by almost 26% from the all-time highs of nearly $11,300 per ton in October 2021.

RELATED NEWS

Copper Price Slump Wil Give Way to Record Buying Spree, City Says

Copper Price Forecast: Technicals Point to a 16% Meltdown

The copper prices are projected to touch $15,000 per ton by 2025, Layton said. However, the prices may see further dip in the immediate short-term. A rally is expected to begin in the next six to twelve months, upon full recognition of the widening gap between supply and demand, which is expected to increase further in tandem with the projected demand jump in electric vehicles and renewables, Citigroup noted.

It must be noted that electric vehicles require nearly three times more copper compared to traditional ICE vehicles.