Global Copper Market Tightens: UBS Forecasts Soaring Prices
UBS analysts raised copper price forecasts due to ongoing mine disruptions and strong demand growth. Prices could reach $13,000 per tonne by December 2026. Supply constraints include slower Chilean output, Indonesian mine incidents, and protests in Peru. These factors contribute to a widening global copper deficit, supporting higher prices.
UBS projects copper market deficits to reach 230,000 tonnes in 2025 and 407,000 tonnes in 2026, nearly doubling previous estimates. The bank also trimmed refined copper production growth to 1.2% in 2025 and 2.2% in 2026, reflecting operational challenges and declining ore grades.
UBS Copper Forecasts Reflect Strong Demand Drivers
Meanwhile, UBS expects global copper demand to grow 2.8% annually, driven by electric vehicles, renewable energy, power-grid investment, and data centers. The bank advises investors to remain long on copper or use volatility-selling strategies, as any price dips are likely short-lived. Copper trades near $10,777 per tonne on the LME, approaching record highs.
SuperMetalPrice Commentary:
UBS’s forecast highlights persistent structural tightness in the copper market. Investors and producers should monitor geopolitical risks, production disruptions, and accelerating demand from electrification. These trends suggest copper could remain a high-margin asset for the next two years.
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