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Analysts at Bank of America (BofA) have forecasted that copper prices will exceed US$10,000 per tonne by 2025, driven by strong demand and limited supply.
At the same time, they predict that iron ore prices would fall below US$80 per tonne by the same year.
A news report by Mining.com, reviewed by Zambia Monitor on Tuesday, highlighted BofA’s optimistic outlook for copper prices, which is supported by high demand, constrained supply, and increased investments in energy transition projects.
Analysts anticipate that Federal Reserve rate cuts would further stabilise manufacturing activity and sustain elevated copper prices through 2025.
Read more: Copper prices rise first time in three sessions to hit $8,493 per tonne
Copper prices have already risen significantly in 2024, bolstered by tight mine supply and challenges in refining, as well as increased spending on energy infrastructure and grid expansion related to decarbonization.
In China, investments in grid infrastructure have counterbalanced weaker demand from the housing sector, further supporting copper prices.
In contrast, iron ore faces downward pressure due to declining demand, particularly from China’s property sector.
The sector’s consumption of iron ore had decreased from 50 percent in 2010 to 20 percent in 2024, driven by a government crackdown on speculative investments and a slowdown in housing construction.
Although steel production in other sectors like machinery had provided some support, it had not been sufficient to offset the overall downturn in construction, according to BofA.
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