- The metal is experiencing supply shortages and demand continues to rise, so the price could skyrocket.
- Research from Fitch Solutions found that the price of copper will rise for these reasons, as well as the transition to renewable or green energy sources.
- Goldman Sachs also assures that the price will rise due to the current shortage, which will deepen in the coming years.
He copperone of the most used metals in the world, could be fired more than 75% in the next two years due to the existing large supply and demand gap.
In parallel, the transition to green energy will further increase the price of the red metalIn addition to the fall in the US dollar, which experts predict, the Fitch Solutions report says.
By 2030, more than 60 countries are expected to support the plan to triple global renewable energy potential, which will greatly contribute to the use of copper.
As a result, Citibank believes that demand for copper will increase by 4.2 million tons and raise the price to approximately US$15,000 per tonwhich is significantly higher than the record of US$10,730 per tonne reached in March 2023.
Demand rises, supply falls, and the red metal brings benefits
Demand is sure to grow more and more as copper is used to make electric vehicle batteries, as well as grids and wind turbines.
That’s why Goldman Sachs expects a deficit of more than half a million tons in 2024 and price 10,000 US dollars per ton.
“We are confident that copper will increase in price significantly in 2025. It would take a ton to reach $15,000.“, they added.