World copper prices could increase by more than 75 percent in the next two years due to supply disruptions and higher demand for this metal, which is fueled by growing interest in renewable energy, according to a report by research unit Fitch Solutions (BMI).
The green energy transition and the likely decline of the United States (U.S.) dollar in the second half of 2024 will raise copper prices, the report added, according to CNBC.
Analysts expect that the U.S. central bank FED will reduce the reference interest rates this year, thereby weakening the dollar and consequently enabling foreign buyers to purchase copper at a more favorable price.
At the recently held climate change conference COP28, more than 60 countries supported a plan to triple the global capacity of renewable energy sources by 2030, and Citibank analysts believe that this scenario is “extremely optimistic for copper”.
In its December report, Citibank stated that the world demand for copper will increase by an additional 4.2 million tons by 2030.
If this scenario comes true, copper prices could rise to $15,000 per ton in 2025, Biznis Info writes.
E.Dz.
