Citi Predicts Copper Prices to Stay Near $13,000 Amid Supply Worries
Citi projects copper prices will maintain levels around $13,000 per metric ton, supported by physical buying. However, geopolitical tensions, specifically between the U.S. and Iran, could introduce downward pressure. The bank anticipates prices will remain above $12,000 through…
Citi analysts anticipate that copper prices will largely remain stable, hovering around $13,000 per metric ton. This stability is primarily attributed to consistent physical buying in the market.
However, the bank also issued a caution regarding potential downward price movements. Geopolitical tensions, particularly those involving the U.S. and Iran, could trigger a "risk-off" sentiment among investors, leading to a decrease in prices. Despite this risk, Citi's analysis suggests that even in a more pronounced market sell-off scenario, strong physical demand for copper is expected to keep prices above $12,000 per ton throughout the second quarter of 2026.
For freight forwarders and supply chain managers, sustained high copper prices could impact the cost of goods for industries reliant on the metal, such as electronics, construction, and automotive. This might lead to increased declared values for cargo, potentially affecting insurance premiums and customs duties. Furthermore, any significant price volatility driven by geopolitical events could influence inventory management strategies and procurement timelines for shippers.