Copper: Near-term headwinds but upside risks to dominate long-term – ING

Copper (LME) prices are now down around 30% from their peak in February. The short-term demand outlook for the red metal remains weak, but economists at ING expect Copper to move back higher in th long run.

Macro headwinds to keep pressure on Copper 

“Recession fears, China's slowdown due to its Covid-19 restrictions, and the Fed’s interest rate hiking path will continue to drive Copper’s short-term price outlook, however tightening supply should maintain the red metal’s price support above $7,500 throughout 2023.”

“We believe Copper prices will remain under pressure until the global growth outlook starts to improve. Tight supply will then become the key focus for the market, which should support prices above $8,000 in the last quarter of 2023.”

“Longer-term, we believe Copper demand will improve amid the accelerated move into renewables and electric vehicles (EVs). Copper has no substitutes for its use in EVs, wind and solar energy, and its appeal to investors as a key green metal will support higher prices over the next few years.”