Bank of America has released a new report, increasing its long-term copper price forecast by 20 percent to $12,000 per ton. This new forecast is equivalent to $5.44 per pound in 2026 currency and indicates an upward trend in copper prices in global markets.
Reasons for the Increase in Copper Prices
The bank has pointed to ongoing supply chain issues as the main factor behind the increase in copper prices. In fact, existing disruptions in supply and demand in the global market, especially concerning copper, have significantly impacted prices and led analysts to update their forecasts.
These changes in the copper price forecast come after more than 12 months of unexpected market policies and developments. It seems that instabilities arising from the war in the Middle East have also brought new risks and affected prices.
Risks and Other Forecasts
Bank of America has also mentioned some existing risks. Among these risks are the potential for a demand shock due to energy or a halt in investment spending in data centers. These factors could influence demand levels and consequently affect copper prices.
Alongside this increase in copper prices, Bank of America has made some minor adjustments to its other forecasts. For example, the aluminum price forecast for 2027 has been reduced by 5 percent to $3,625 per ton. This decrease may be due to changes in demand as well as market fluctuations.
Bank of America has also pointed out the impact of high interest rates and a strong dollar on gold price trends, forecasting that these factors could create a bearish outlook for gold prices. This indicates the sensitivity of markets to economic and financial changes that can affect investments and the pricing of commodities.
