Analysts sharply raised their forecasts for the 2023 benchmark copper price after top metals consumer China improved its epidemic prevention and control measures,
London Metal Exchange spot copper is expected to average $8,625 a ton in 2023, according to the median forecast of 31 analysts, 14% higher than the median forecast in October, but still 6.2% below Monday's close of $9,197.
The metal rose to $9,550.5 last week, also its highest level since June 2020, as China lifted strict coronavirus restrictions at the end of last year, raising optimism about the outlook for the country's economic growth and metals demand.
Most investors expect copper demand to rebound in 2023, but there are conflicting views on how soon it will happen. "It's a lot of work," said Ava Pervez, an analyst at ING. 'We have raised our 2023 copper price forecast on the optimism of China's reopening, but remain cautious on the first quarter as the number of infections in China continues to rise,' Mr. Mant said.
Analysts forecast a global copper oversupply of 165,000 tonnes this year, down from 252,000 tonnes forecast in October, as delays to copper projects in leading producer Chile and political unrest in Peru disrupt copper production.
