Current Copper Price Trends and Future Outlook
The price of copper has been on the rise this year, but analysts predict a slowdown due to concerns over potential tariffs by Donald Trump and stimulus measures from China. As of Thursday, copper futures are at $4.70 per pound, marking a 0.01% decrease in the session.
Annually, copper has seen an increase of 16.85%. Since its historical high of $5.2985 per pound on March 25, 2025, the price has dropped by 11.20%. The industrial metal’s importance has grown due to the increasing demand for battery-powered electric vehicles, the rise of artificial intelligence (AI), and global countries’ shift towards renewable energy sources.
Citi’s Copper Price Forecast
Despite the overall rise, Citi forecasts a slower decline in copper prices over the next three months. This is attributed to Donald Trump’s recent relaxation of tariffs, China’s buying during market downturns, and the limited supply of scrap metal due to inventory buildup in the United States.
“All signs point to a more gradual copper price drop until the second quarter of 2025, compared to the deeper and faster decline we previously anticipated. Funds remain positioned for further gains,” Citi stated in a note.
Key Questions and Answers
- Q: What is the current copper price and its trend? A: Copper futures are currently at $4.70 per pound, representing a 16.85% annual increase. However, it has dropped by 11.20% since its historical high of $5.2985 per pound on March 25, 2025.
- Q: Why are experts predicting a slowdown in copper price rise? A: Analysts foresee a slowdown due to concerns over potential tariffs by Donald Trump and stimulus measures from China, as well as recent relaxation of tariffs by Trump and China’s buying during market downturns.
- Q: What factors contribute to copper’s rising importance? A: The growing demand for battery-powered electric vehicles, the rise of artificial intelligence (AI), and global countries’ shift towards renewable energy sources have increased copper’s significance as an industrial metal.
- Q: What does Citi predict for copper prices in the next three months? A: Citi forecasts a slower decline in copper prices over the next three months, attributing this to Trump’s tariff relaxation, China’s market interventions, and limited scrap metal supply.
