Why Copper Prices Could Be a Buying Opportunity for Investors
Copper Prices Expected to Soar
Copper prices are at their lowest levels in almost a year, but it could provide investors with a buying opportunity. Wall Street analysts have turned bullish on the metal, with Citi among the banks expecting prices to soar. In its base case, copper could rise by nearly 50% in 2025 to $12,000 per ton, while in the bull case, prices could double to $15,000 per ton, Citi said in a May 31 note.
Market Analysis
In another May report, Goldman Sachs gave copper prices 25% upside over the next 12 months, rising to $11,000 per ton. Copper prices suffered a nearly 6% decline in May — on pace for the worst month in almost a year since June 2022, according to AsumeTech analysis. But the market is currently in a “significant deficit” phase, said Goldman analysts. “China demand is outperforming growth concerns,” Goldman wrote. “Whilst China’s demand strength has been underappreciated, it is equally important to recognise the persistence of a negative shock in mine supply as a tightening effect on this market.”
Long-Term Global Demand for Copper
Overall, long-term global demand for copper is growing, thanks to continued policy support for renewables and electric vehicles, according to Goldman. The metal has a wide range of applications throughout construction and industry. It’s also a critical component in electric vehicles, used in batteries, wiring, charging points and more.
How to Invest in Copper
For those looking to buy into the sector, AsumeTech Pro screened for stocks in the Global X Copper Miners ETF. The following stocks have “buy” ratings from 50% or more of analysts covering them, and average price target upside of more than 10%. Canadian miner NGEx Minerals stood out as having the highest potential upside — at nearly 100%, with a 66% buy rating from analysts covering the stock. U.S.-listed Teck Resources also made the list, with more than 10% upside and a 72% buy rating. Filo Mining, another Canadian miner, had the highest buy rating at 91%. Investors can also opt for exchange-traded funds that invest in copper futures contracts, such as the United States Copper Index ETF and the iPath Series B Bloomberg Copper Subindex Total Return. — AsumeTech’s Michael Bloom contributed to this report.
