Bank of America predicts copper prices will break 10,000

September 18, foreign media quoted Bank of America (Bank of America, BofA), the latest analysis report pointed out that the copper price is 

expected to break through the key psychological price of $ 10,000 per tonne before 2025, while the iron ore market is shrouded in the shadow

 of oversupply, the price or will plummet to below $ 80 per tonne.

Bank of America's team of analysts are confident about the outlook for the copper market, and they believe that multiple positive factors will 

combine to push up copper prices. Firstly, the Federal Reserve's expected interest rate cut has injected a stabilising agent into manufacturing 

activity, which is expected to boost demand for industrial metals such as copper. Second, the acceleration of the global energy transition and 

infrastructure development, especially decarbonisation projects such as power grid expansion, has seen a sharp rise in demand for copper, 

further exacerbating supply-demand tensions in the market. In addition, tensions in mine supply and bottlenecks in refining capacity continued

 to provide impetus to rising copper prices.Translated with DeepL.com (free version)

Data shows that copper prices have risen by a cumulative 10 per cent since 2024, driven by tightening mine supply and strong growth in energy

 infrastructure investment. In the Chinese market, despite a slowdown in demand for copper in the housing sector, a significant increase in

 investment in the power grid has effectively filled the gap and continues to provide solid support for rising copper prices.

However, the iron ore market presents a very different picture. Bank of America pointed out that the decline in steel production and the weakness 

of demand in Asia (especially China) has put enormous pressure on iron ore prices. Although the machinery and other industries on the steel 

demand has picked up, but overall it is still difficult to offset the negative impact of the decline in demand. At the same time, iron ore production

 in major exporting countries, such as Australia and Brazil, continued to increase, leading to further oversupply in the market.

Analysts are forecasting that the iron ore market will see a surplus supply of around 190 million tonnes in the coming year, or 7.5% of total supply. 

This huge surplus is expected to push iron ore prices below the key support level of $80 per tonne. In the face of the severe market situation,

 large miners may adopt strategies to reduce supply or exit high-cost operations in order to cope with the downward pressure on prices.

Notably, authoritative financial institutions such as Goldman Sachs are also pessimistic about the iron ore market, believing that oversupply and 

weak demand will continue to affect the market trend. This consensus further highlights the challenges and uncertainties facing the iron ore market.