The price of copper is expected to rise by over 75% by 2025, driven by supply disruptions and increased demand for the metal, largely due to the global shift towards renewable energy.
What Happened: The increasing demand for copper, partially fueled by the global transition to green energy, is projected to drive up its price, CNBC reported on Wednesday. Factors such as potential U.S. Federal Reserve rate cuts, a weakened U.S. dollar, and the recent pledge by more than 60 nations at COP28 to triple global renewable energy capacity by 2030 are contributing to this forecast.
These factors combined are expected to push copper prices to an estimated $15,000 a ton in 2025, a substantial increase from the record high of $10,730 per ton reached in March 2023. The report suggests that this prediction is contingent on a smooth economic recovery in the U.S. and Europe, as well as ongoing investments in the energy transition sector.
Analysts are also optimistic about the future of copper. Goldman Sachs anticipates a deficit of over half a million tons in 2024 due to mining disruptions, which could drive prices to $10,000 per ton by the end of the year and even higher in 2025.
See Also: Crypto Experts Eye Sky-High Bitcoin Values In 2024: What's Driving The Bullish Predictions?
Why It Matters: The projected surge in copper prices is significant, especially in the context of the global push for renewable energy. The recent COP28 climate change conference, held in Dubai, saw a proposed climate deal text that emphasized a significant shift from fossil fuels to combat climate change.
This development marked a first in the COP summit’s three-decade history, proposing a transition away from fossil fuels in energy systems to achieve net zero by 2050, in line with scientific recommendations.
Read Next: Apple Card Savings Account Holders To Receive 1099 Interest Tax Form: What You Need to Know
Image by Jose Luis Stephens via Shutterstock
Engineered by Benzinga Neuro, Edited by Pooja Rajkumari
The GPT-4-based Benzinga Neuro content generation system exploits the extensive Benzinga Ecosystem, including native data, APIs, and more to create comprehensive and timely stories for you. Learn more.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
