(MENAFN - Newsroom Panama) Goldman Sachs Group Inc. is doubling down on its bullish outlook on copper to project prices to reach $15,000 per tonne by 2025 as the global transition to green power drives demand.
Copper has hovered around $ 9,000 in recent weeks, but much higher prices will be needed to replenish supplies as its use increases in electric vehicles and renewable energy projects, said Goldman analysts Nicholas Snowdon, Daniel Sharp and Jeffrey Currie in a report entitled "Copper is the New Oil."
Goldman joins metals trader Trafigura Group in betting that copper will hit all-time highs above $10,100 per tonne and advance considerably from there. At the center of both projections is a warning that the market will run very short of copper in the next few years unless prices rise sharply to stimulate supply.
"Copper is so central to the green transition - a global effort underpinned by government support - that supply requirements necessitate an increase in copper prices," Goldman analysts wrote in the April 13 report.
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