Analysts at Morgan Stanley stated that despite signs of weak demand, copper prices are expected to remain strongly supported next year.
Driven by concerns over supply tightness due to shutdowns at major mines and large volumes of copper being shipped to the US, copper futures on the London Metal Exchange (LME) hit a new record on Monday, reaching $11,771 per mt.
China's copper consumption growth is projected to slow from 4% this year to 2% by 2026, with declines expected in key sectors such as air conditioning and EVs.
However, Morgan Stanley indicated that robust growth in energy storage system demand and continued expansion in data centers are likely to bolster copper prices. The bank forecasts an average copper price of $12,780 per mt for next year.
(Comprehensive report by Wen Hua)
