Citigroup expects copper prices to reach record highs

Citigroup expects copper prices to reach $10,000 per ton over the next three months, as global supplies remain tight until the details of US import tariffs become clear.

The metal has seen a significant rise in recent weeks after US President Donald Trump ordered an investigation into copper imports, which accelerated shipments to the US ahead of any tariffs. Copper prices on the London Metal Exchange also reached their highest level since last October, according to Bloomberg, which was reviewed by Al Arabiya Business.

“We expect the physical market outside the US to remain tight until May or June, which could temporarily offset price pressures from broader US tariff announcements,” Citi analysts, including Max Leighton, wrote in an email note.

Despite mounting concerns about the US economy due to disruptions caused by Trump’s trade policies, industrial metals have managed to hold up relatively well. Copper also benefited from the increasing scarcity of raw materials, with demand growth accelerating compared to the pace of global mine expansion.

Copper prices rose 0.3% to $9,797 per ton, extending their gains this year to about 12%.

In China, authorities issued more export licenses, amid growing losses for smelters due to intensified competition for copper concentrate, where processing fees fell below zero.

In another development, Trump’s new Section 232 tariffs on steel and aluminum went into effect on Wednesday, prompting retaliation from the European Union and Canada. Although Trump has made clear his intention to impose tariffs on copper, the U.S. Commerce Department still needs to complete its investigation and submit its recommendations before implementing the decision.

This forecast represents a change from Citigroup’s previous estimate, which projected copper to fall to $8,500 per ton during the second quarter.