The golden age for copper is coming

Copper on the London Metal Exchange is rising in price in response to forecasts by analysts at Goldman Sachs, who have increased their forecasts for metal prices. Goldman Sachs expects copper to rise above $ 6,200 per tonne in the next 6 months versus an early estimate of $ 4,800 per tonne.

In addition, a deficit in the copper market can be expected in 2017, which could reach 180,000 tons, according to forecasts by Max Leighton and Jeff Curry, analysts at Goldman Sachs. Although, earlier analysts estimated that next year the global copper metal market may have a surplus of 360,000 tons.

Copper mines have cut metal supplies and global copper demand is growing stronger than expected. According to Goldman Sachs estimates, global copper production will fall 0.4 percent in 2017, while it was previously expected to increase production by 1.0 percent.

The bank also forecasts that copper demand will increase 2.2 percent next year to 1.7 percent in the previous forecast. However, the average copper price could fall from $ 5,800 per tonne in 2017 to $ 5,200 per tonne by 2020 and a global oversupply of metal again, Goldman Sachs says.