Copper Prices Approach 2-Year Highs: What's Behind Analyst's $12,000 Price Prediction For 2026?
Portfolio Pulse from Stjepan Kalinic
Copper prices have surged to near two-year highs of $10,000 per metric ton, with expectations of reaching $12,000 by 2026 due to increased demand from electric vehicles, power infrastructure, and technology sectors. Trafigura predicts a 10 million metric ton increase in copper consumption over the next decade. Citibank and Bank of America are bullish, citing potential supply deficits. However, Citic Metal Co. warns of weak demand from fabricators. Anglo American (NGLOY) reports an 11% increase in copper output, attributing it to high throughput at its Quellaveco mine, despite planning to cut capex and production in the coming years.
April 23, 2024 | 8:24 pm
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Anglo American reported an 11% increase in copper output, largely due to its Quellaveco mine in Peru, despite planning to cut capex by $1.8 billion and decrease production in the coming years.
The increase in copper output and the strategic adjustments in capex and production reflect positively on Anglo American's operational efficiency and market positioning. The company's ability to capitalize on the current copper rally, despite planned production cuts, suggests a strong short-term outlook. However, the planned decrease in production could be a strategic move to manage resources and potentially maintain or increase copper prices by controlling supply.
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