Fitch Anticipates Copper Prices to Hit March Peaks in 2027

SEATTLE (Scrap Monster): The new report published by research firm Fitch Solutions has cut the price forecast for the metal for 2023 to $8,400, significantly lower when compared with the previous forecast of $9,580. Also, it foresees copper prices regaining the March 2022 peak levels in 2027.

RELATED NEWS:

Fitch Solutions Predicted Iron Ore Output Surge Until 2026

Fitch Foresees Dip in Global Steel Prices in 2022 on Subdued Chinese Demand

Fitch expects copper market to record a small surplus during the current year. From 2023 onwards, the market will turn into deficit. The growing deficits are expected to peak at levels of around 9 million tonnes by the end of the current decade. The demand will be primarily driven by consumption related to green transition.

According to Fitch Solutions, a pipeline of new projects, especially in Chile, Peru, Australia and Canada, will bring additional copper to the market. Also, it predicts several key supply issues in Latin American countries to ease in the forthcoming years, giving rise to boosted supplies. However, from 2026 onwards, demand growth will outpace even these improved supplies.

Over the next five years, the copper prices are likely to witness steady improvement. By 2027, it will likely surpass its March peaks above $10,000. The emerging long-term structural deficit points to a copper price of $11,500 by 2031, it added.