BoA: copper may rise in price up to $20 thousand per ton
The cost of copper by 2025 could jump to $20,000 per
metric ton, says Bank of America. Prerequisites for this
are its growing deficit on the world market and imbalance of
supply and demand. This opinion is stated by analysts of the bank in
report, published on Tuesday.
Available copper reserves in the world may be sufficient only for 3 weeks - at the moment they are equal to the amount recorded at the end of the year.
At the moment they correspond to the amounts recorded 15 years ago.
years ago. Demand for the metal, meanwhile, is rising as the
global economy is recovering from the pandemic,
say the bank. That will lead to its shortage, with stocks in the current and
2022 stocks will shrink, experts predict. Growing
the likelihood of backwardation - exceeding the price of copper
the value of its futures contracts. As an example, the bank
cites the situation with nickel in 2006-07, when, amid a deficit, its prices tripled.