UPDATE: Copper prices are experiencing a notable decline of 0.7% after hitting an all-time high just last week. Analysts at Goldman Sachs have issued a critical alert, declaring that any potential breakout in copper prices will be short-lived.
This urgent assessment comes as the market grapples with changing supply and demand dynamics. Goldman Sachs’ latest report examines projections for 2026, indicating that the recent surge was fueled by a combination of a weaker dollar, improved growth expectations from China, and heightened investor enthusiasm. However, they caution that current market positioning is excessively stretched, sitting at the 99th percentile, despite low open interest levels.
The firm acknowledges a potential for further investment in copper, which could drive prices higher temporarily. Yet, they firmly believe that this increase will not be sustainable, as the physical copper market is not “yet” undersupplied. Goldman Sachs anticipates that investors may begin to exit their positions in copper as early as early 2026.
Adding to the conversation, Robert Friedland, CEO of Ivanhoe Mines, stresses the significance of global demand, which currently stands at around 28 million tonnes. He points out the pressing need for significant investments in the United States’ electrical grid, highlighting an urgent infrastructure challenge that could impact copper demand in the coming years.
As the situation develops, market participants and investors are advised to stay vigilant. The implications of these projections could significantly affect both the commodities market and broader economic conditions.
Watch for further updates as the copper market reacts to these assessments and as investment strategies evolve in response to the anticipated shifts.
