Goldman Sachs: Copper Prices to Reach Fresh All-Time Peak by Mid-Year

SEATTLE (Scrap Monster): The latest market research report on copper prices published by Goldman Sachs says that the red metal is seen ‘sleepwalking towards a stockout’. The warning follows the report published in the prior month that had warned of rising scarcity of the metal.

The report cited that copper is currently passing through a seasonal surplus phase. Despite this, the copper stocks on exchanges witnessed decline for the first time in almost a decade. This suggests extreme fundamental turn for the metal.

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Goldman estimates refined copper deficit to total 374,000 tonnes for the current year, almost double when compared with the previous estimates. It also anticipates substantial increase in shortfalls projected over the next two-year period. The analysts believe that higher copper prices are inevitable.

Despite several tailwinds, copper prices have recorded modest rise during the current year. The flat positioning of the metal offers good entry point for long investors. Goldman revised upwards its price targets for three, six and twelve months. It expects the prices to rise steadily over the period to surpass $13,000 per tonne within a year. Incidentally, copper prices had set a record intraday high on March 7^th.