Experts Are Hopeful That Copper Prices Will Gain Stability In 2023January 7, 2023
2023 is just around the corner, but rumors and future uncertainties still dominate the market.
As a result, all the major markets are going downward. To prevent further decline, US Central Bank has decided to adopt a strict approach regarding the monetary provisions.
The feds have decided to throw the economy toward the recession to ease rising inflation.
Moreover, experts have further predicted that the current turbulent economic condition will last until the mid of 2023.
As far as the price of copper is concerned, 2022 was amongst the worst years in terms of copper price performance.
Indicators also show that the volatility regarding the Copper prices will remain on the up. Moreover, lesser carbon footprints, increased demand for electric vehicles, and go-green trends have also significantly reduced copper prices.
Copper Price Outlook For 2022
Growing demands and limited supply have helped copper optimistically begin 2022. On the LME, the price of copper rose to historic highs of over $10,000 a tonne during the first half of FY 2022.
On the other side, futures on high-end American copper rose beyond $5 per pound.
But this surge in copper prices was short-term, and the price of metal plunged down soon after the rumors about the upcoming recession became stronger. Its prices soon declined by two year low, below $7,000 per tonne.
Although 2022 is about to pass, cooper has somehow recovered its prices. The current price of copper is still 14% lower than its all-time high at the start of 2022.
Future Forecast of Copper’s Price
Moving forward, most experts predict that copper’s price will remain volatile and on the low. The sole reason behind this is souring interest rates and expected economic recessions.
Moreover, Weak demand from the Chinese market is another significant reason that the price of copper might remain low.
Low market demand, China’s Covid-19 troubles, and high-interest rates have put pressure on copper.
ING Forex experts have said that for the first half of 2023, the price of copper will remain at $7,500/t. But, for the next half of 2023, a slight surge in the price is expected as the cost will touch the $8,000/t mark.
Interestingly, Commodity Analysts at Bank of America see things differently for those considering investing in copper.
According to them, the first half of the copper price will remain difficult. But in the second half, a staggering rise in the price is expected. For the second half, the price of copper will be as high as $12,000/t.
Along with Bank of America, the experts at Goldman Sachs are also backing the bullish ride of copper. The renowned financial institution sees the average price of copper in 2023 at around $9,750; for FY 2024, the price is expected to rise to $12,000 /t.
The Forex Experts at CIBC are Less Bullish over the Price of Copper
Unlike all the names mentioned above, the commodity experts at CIBC are less hopeful about any price hike when talking about the price performance of copper in 2023.
The Canadian Bank sees that the first half of 2023 will be killer for copper as the metal’s price will plunge by 11%. However, in the second half of 2023, the price of copper will rise to $3.65/p.
The reason that Canadian bank is skeptical of copper going bullish is strong economic indicators pointing out tough market conditions.
But most experts believe that despite all the uncertainties, one thing is sure the demand for copper, in the long run, will increase. The current economic issues are expected to be settled by the end of mid-2023.
Experts are also hopeful that the next half of 2023 will be subjected to rapid industrialization across the globe, and as a result, the price of copper will go up.
As of this writing, experts have divided opinions on the commodity’s price for the first six months. But after the first six months, the chances are high that copper will yield big investment returns.