Citi has reaffirmed its three-month copper price target at $15,000 a tonne, a level that would mark fresh territory for the metal. The bank says structural and cyclical tailwinds outweigh the risk from possible US tariffs, even as heavy fund positioning leaves prices vulnerable to near-term pullbacks.
Citi has reaffirmed its bullish stance on copper, holding its three-month price target at $15,000 a tonne. The forecast sits well above current levels and would mark fresh territory for the industrial metal, widely used in construction, power grids and electric vehicles.
In its September outlook, the bank said the balance of risks was skewed to the upside, despite the threat of US tariffs hanging over the market.
Heavy positioning leaves copper exposed
Citi acknowledged that copper looked exposed in the near term. Heavy positioning by investment funds leaves the metal vulnerable to sharp pullbacks if bearish news on American copper tariffs emerges. Any such setback would prove temporary, the bank argued.
It pointed to a mix of structural, cyclical and strategic tailwinds that it expects to support prices into 2027, more than offsetting a gradual erosion of the US tariff risk premium.
Citi doubts a cathode tariff materializes
On tariffs, Citi set out a clear house view. The bank does not expect the US to impose a levy on imported copper cathode, the refined form traded on global exchanges. Official clarity was unlikely before the American mid-term elections, it cautioned, and possibly not even then.
Citi framed any near-term wobble on tariff doubts as a buying opportunity rather than a turn in the wider trend.
Source: Proactive/Yahoo Finance
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