Goldman Sachs Raises Price Target On Copper - InvestingChannel

Goldman Sachs Raises Price Target On Copper

Investment bank Goldman Sachs sees copper hitting new highs in the coming years.

Analysts at Goldman Sachs forecast that copper prices will soon test record highs, saying the bull run for the industrial metal is “fully underway.”

Copper prices on Tuesday rose to their highest level since March 2013, reaching $7,719 per metric ton following stronger-than-anticipated manufacturing activity in China and South Korea.

Copper, which is used in everything from power to construction, has risen more than 22% so far in 2020 and is on pace for its best year since 2017. Prices have been boosted by supply disruptions, hopes for more U.S. economic stimulus, and China’s economic recovery from the Covid-19 crisis.

“This current price strength is not an irrational aberration, rather we view it as the first leg of a structural bull market in copper,” Goldman Sachs analysts said in a research note on Monday.

Goldman analysts raised their 12-month forecast for copper to $9,500 per metric ton, up from a previous estimate of $7,500. The Wall Street bank said it now expects a sustained, higher average price for 2021 and 2022.

Goldman Sachs has estimated copper prices will average around $8,625 next year, before climbing to an average of $9,175 in 2022. By the first half of 2022, Goldman analysts said that it is “highly probable” that copper will test the existing record highs of $10,170 set in 2011.