Copper to move downwards throughout 2022 and rebound towards $12,500/t by 2025 – SocGen

Copper prices more than doubled from 1Q20 to May 2021, but this impressive rally then stopped and prices have trended downward over the past six months. Strategists at Société Générale are slightly bearish in 2022 on abundant supply, however, things are set to get very bullish in later years.

Copper prices to drop throughout 2022

“We are still bearish on copper in the short-to-medium term and see prices averaging a low $7,500/t in 2Q22.” 

“We think this subdued price reaction shows that the investor frenzy related to copper’s usage in the green transition is fading. The copper market is reconnecting with its fundamentals and we expect it to be bearish in the short-term.”

“In the longer-term, both supply and demand outlook for copper are extremely bullish. We could see prices averaging $12,500/t by 2025. This is far beyond our one year-out forecast, but we expect the market to be forward-looking and prices to start rebounding to $8,500 by the end of next year.”