Analysts expect a copper rally, but it is still delayed.
According to Goldman Sachs, copper stocks are increasing on the one hand, but on the other hand, demand for green metals will lead to a shortage of stocks and higher prices. Goldman Sachs forecasts a copper price of USD 12,000 per tonne by the end of 2025. One factor that could postpone a copper price rally is the ongoing weakness of the Chinese real estate market. The stockpiling is therefore offset by the growing demand for green metals such as copper for the energy transition. It should not be forgotten that the supply of copper scrap is becoming increasingly scarce. The price of the reddish metal is expected to bottom out at USD 8,700 to 9,000 per tonne, which could mark an entry point.
A shortage on the copper market is now expected at the end of 2025. The medium-term fundamental outlook is good. In the long term, areas such as electric vehicles and renewable energies will drive demand. Longer-term deficits are forecast to drive copper prices. There are also rays of hope when it comes to China. In August, imports of copper ore rose significantly compared to July. Overall, China has imported around three percent more since the beginning of 2024 compared to the first eight months of 2023. Car sales figures in China were rather weak in August. One percent fewer vehicles were sold than in August 2023.
A look at China's foreign trade in August shows that exports were quite strong, as they rose for the fifth month in a row. This shows that international demand is positive and therefore good for the Chinese economy. Overall, the picture is therefore quite mixed. Higher copper prices will be seen above all when the Chinese economy picks up. Investors can bet on copper as an important energy transition metal with Foran Mining or Mogotes Metals, for example.
Foran Mining focuses on copper, zinc, gold and silver. The McIlvenna Bay project (in the Flin Flon greenstone belt) is particularly noteworthy. 25 kilometers away, Foran Mining also has the Bigstone deposit, both located in Saskatchewan.
Mogotes Metals - https://www.commodity-tv.com/ondemand/companies/profil/mogotes-metals-inc/ - focuses on Chile and Argentina. The Filo Sur copper-gold-silver project, located on the border between Chile and Argentina, is situated in a promising area and has successful neighbors.
Current company information and press releases from Foran Mining (- https://www.resource-capital.ch/en/companies/foran-mining-corp/ -) and Mogotes Metals (- https://www.resource-capital.ch/en/companies/mogotes-metals-inc/ -).
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