18:43 UTC, 20 Nov 2024 — Summary by
Based on an extensive analysis of various market dynamics, expert opinions, and reference data, it is highly probable that copper prices will increase in 2025. The primary drivers of this upward trend are the substantial demand growth anticipated from critical sectors such as renewable energy and electric vehicles (EVs). These industries rely heavily on copper for electrical wiring, battery components, and other essential applications. As global economies intensify their shift towards sustainable energy projects and the widespread adoption of EV technology, the demand for copper is expected to surge significantly. Projections indicating copper prices ranging between $4.50 to $7.00 per pound by 2025 underscore the growing consumption patterns within these high-demand sectors.
Additionally, supply-side constraints further bolster the likelihood of rising copper prices. Challenges such as resource depletion in major copper-producing regions and geopolitical tensions can limit the availability of copper just as demand is escalating. These factors create a supply-demand imbalance that is conducive to price increases. While there are mitigating factors, such as potential weaknesses in Chinese demand and the impact of broader economic conditions, the overall indicators suggest a robust demand trajectory that outweighs these concerns. Advancements in recycling technologies may alleviate some supply pressures, but they are unlikely to fully counterbalance the increasing need for copper in emerging technologies and infrastructure projects. Consequently, the combination of rising demand and constrained supply strongly supports the expectation that copper prices will experience an upward trend in 2025.