New Copper Forecast from Citigroup!

Citigroup revised its copper forecast after hitting the record high.

New copper forecast came from Citigruop. The company changed its copper price estimate to 10 thousand dollars after seeing the copper price level of 8 thousand 437 dollars and broke a record. Citigroup expects a recovery in copper demand above the anticipated and prices will climb to the level of 10 thousand dollars per ton. The institution, which estimates that there will be 500 thousand tons of deficit in 2021 with strong demand, stated that this situation will be due to low stocks. The bank commented that "end-user consumption in places other than China is at the level we do not think we will see for the next 1-2 years", and noted that this situation is due to changes in preference and cheaper money. Citigroup has increased its 0-3 month copper price forecast to $ 9,000 from $ 7,200, while announcing its 6-12-month price forecast as $ 10,000. According to the company, the updated expectations and stock estimates showed that the scissors in copper prices could be devastating.   Goldman Sachs and BofA Also Updated Their Forecasts Goldman Sachs announced its 12-month forecast for copper prices at $ 10,000 at the end of January, while Bank of America updated its price forecast to $ 10 at the beginning of January. Both banks stated that the rise in the renewable energy trend and the expected shortage in the global copper markets had an effect on revising their price estimates. Copper tested the 8 thousand 437 per ton level at London Metal Exchange on the second day of the week and saw the peak of the last 9 years. MineLife Pty Senior Analyst Gavin Wendt stated that the increase in copper prices was affected by some positive factors, said, "These are the expectation that US incentives will cause an increase in inflation, the decrease in the dollar and historically low stocks". The analyst also noted that the outlook for copper production in 2021 is negative, due to coronavirus cases seen in key production regions in South America.