Copper prices in three-month deliveries on the London Stock Exchange LME grow by 2%. and is valued at USD 11,669 per tonne. On the Comex in New York, copper increases by 1.8%. and costs $5,4710. per pound.
Copper prices have hit a record high, spurred by an upbeat forecast from Citigroup as investors anticipate shortages due to U.S. stockpiling.
Citigroup forecasts show that the price of copper will average PLN 13,000. hole. in the second quarter of next year as inventories grow in the US, creating deficits in other countries.
“We are confident in the growth of copper prices until 2026, supported by many factors, including an increasingly constructive fundamental and macroeconomic background,” Citi analysts said in the report.
They forecast 2.5%. growth in global consumption next year, citing lower interest rates and fiscal expansion in the U.S. as drivers of growth, as well as European military buildup and energy transition. Copper has gained over 30% this year. on the London Metal Exchange.
Gains have accelerated in recent weeks on growing concerns about metal flowing into America in anticipation of import tariffs next year, which will in turn lead to stockouts elsewhere. According to Bloomberg's sources, in preparation for such a situation, the brokerage house Mercuria Energy Group ordered copper worth about $500 million. from LME warehouses.
BloombergNEF indicated in a report on Thursday that the copper market is expected to enter a structural deficit next year, which will deepen over the next decade due to strong demand and tight supply.
However, other analysts have published more conservative forecasts for copper in recent days. According to Macquarie Group, although the copper market is expected to remain volatile and could easily reach new highs, prices above 11,000 dollars per tonne are not sustainable because the global market is not physically limited.
Copper inventories on world exchanges have increased rapidly to over 656,000. tons, the highest level since 2018, of which approximately 60 percent is located in warehouses under the Comex exchange in the USA. Macquarie groiup's view reflects caution expressed earlier this week by Goldman Sachs Group Inc., which does not expect copper shortages before 2029.
A new record for KGHM shares, silver also helps
The price of KGHM shares on the Warsaw Stock Exchange increased by 4.4% on Friday morning, to PLN 235. This is a new all-time record. For comparison, the WIG index increased slightly during this time. KGHM's quotations increased by as much as 23% in just one month. They have doubled since the beginning of the year, during which time WIG20 has gained 35%. The current capitalization of KGHM, i.e. the market value of all shares, amounts to PLN 46.2 billion.
KGHM is not only one of the leading copper producers in the world, but its position in terms of silver supplies is even stronger – the Polish state-owned company is the second largest producer of this metal in the world. Recently, the price has been breaking all-time records, gaining over 40% in three months, and about 100% since the beginning of the year. and one ounce currently costs about $5,864.
