Copper Prices Could Soar to $20,000 Per Ton Amid Low Inventories, High Demand

The world may soon face a copper shortage, as widening supply and demand deficits threaten to push the price of the metal to $20,000 per metric ton before 2025.

According to a note published by Bank of America commodity strategist Michael Widmer and later seen by CNBC, copper inventories have fallen to levels not witnessed in 15 years, and are only able to cover 3 weeks worth of demand. “Linked to that, we forecast copper market deficits, and further inventory declines, this year and next,” he said.

The latest copper shortages come just as the global economy is showing signs of recovery and industrial sector demand is rising. “With inventories close to the pinch-point at which time spreads can move violently, there is a risk backwardation, driven by a rally in nearby prices, may increase,” Widmer explained. Increased volatility from declining inventory levels does not come as surprise, Widmer added, pointing to nickel shortages at London Metal Exchange warehouses between 2006 and 2007 that caused a 300% rally in nickel prices.

The Bank of America anticipates that copper prices will surge to $13,000 per ton over the next several years, after hitting $10,000 last week— the highest in nearly a decade. If our expectation of increased supply in secondary material, a non-transparent market, did not materialize, inventories could deplete within the next three years, giving rise to even more violent price swings that could take the red metal above $20,000/t ($9.07/lb),” Widmer said.

Elevated copper prices also received a further boost by a weakening US dollar and a government spending agenda that focuses on green infrastructure, Livermore Partners managing director David Neuhauser told CNBC. “I think copper is the new oil and I think copper, for the next five to 10 years, is going to look tremendous with the potential for $20,000 per metric ton,” he added.

Information for this briefing was found via CNBC. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

2026 Could Be Gold’s Biggest Year Yet!? | Ryan King – Equinox Gold

Gold Is Screaming Higher While Currencies Burn | Simon Ridgway – Rackla Metals

We Have the Highest-Grade Antimony Deposit in North America!? | Jim Atkinson -Antimony Resources

Recommended

Canadian Copper Secures $8 Million Lead Order From Ocean Partners As Part Of Larger Funding Round

Northern Superior Expands Philibert With 350 Metre Step Out Testing 1.10 g/t Gold Over 25.5 Metres

Related News

Spruce Ridge Resources To Commence Drilling At Newfoundland Copper Project

Spruce Ridge Resources (TSXV: SHL) this morning announced that it is intending to immediately commence...

Friday, June 26, 2020, 09:57:45 AM

Environmentalists Are Crushing Clean Energy Mining Projects Even In Relatively Affluent Countries

Intense on-the-ground opposition to clean energy-related mining projects even in countries with reasonably high standards...

Saturday, November 11, 2023, 12:37:00 PM

Max Resource Releases Initial Results From AGH Study On Cesar Project

This morning, Max Resource Corp (TSXV: MXR) reported initial results from the currently ongoing study...

Tuesday, May 26, 2020, 08:33:11 AM

First US Strategic Minerals Reserve Is Coming: What Minerals Are In Focus

A public-private initiative will establish the first Strategic Minerals Reserve in US, headquartered at the...

Friday, August 22, 2025, 11:31:00 AM

Chile Proposes Changes To Mining Royalty Bill, Sets Flat 1% Ad Valorem Tax Rate

Chile’s finance ministry has proposed changes to the mining royalty bill that drew flak from...

Saturday, October 29, 2022, 11:10:00 AM