Copper Market Bullish as Supply Deficit Forecasts Emerge
Citigroup analysts upgrade major producer Freeport-McMoRan to 'Buy', forecasting copper prices could surge to $12,000 per ton by 2026.
The global copper market is flashing strong bullish signals as a consensus grows among analysts that a looming supply deficit will drive prices significantly higher. This sentiment was amplified after Citigroup released a research note forecasting a major price surge and upgrading a key industry player.
Market dynamics are shifting rapidly, with previous expectations of a surplus now being replaced by concerns over a significant shortfall. According to a recent analysis, the , driven by a combination of persistent supply disruptions at major mines and steadily increasing demand from the green energy transition and technology sectors.
Adding fuel to the fire, Citigroup analysts issued a notably optimistic outlook, raising their by 2026. In a related move, the bank from 'Neutral'.
Citi's thesis is built on a potent mix of factors, including "unprecedented mine outages, still strong demand and supportive macro trends" like anticipated interest rate cuts from the U.S. Federal Reserve. The upgrade for Freeport-McMoRan suggests that recent operational setbacks, which had weighed on the stock, are now seen as a compelling entry point for investors before the full impact of the supply squeeze is felt across the market. The renewed focus on supply security and rising prices places the entire basic materials sector in the spotlight for the remainder of the year.