Goldman Sachs expects copper prices on the London Metal Exchange (LME) to reach $15,600 per tonne by December 2027, representing an increase of approximately 13% from current spot levels.
The investment bank’s forecast follows a period of rising copper prices, with the metal trading at just under $10,000 per tonne during the previous year.
Goldman Sachs attributed its outlook to increasing demand from electrification, energy security initiatives, strategic inventory accumulation, data centre development and infrastructure supporting artificial intelligence.
The bank also identified constraints on mine production as a factor influencing the outlook for copper supply.
US and China Supply Chain Policies Influence Copper Markets
According to Goldman Sachs, policies introduced by the United States and China over the past year to secure domestic supply chains have increased competition between the two countries for refined copper.
Both countries have sought to improve access to the metal, which is used in electrical infrastructure, industrial equipment and technologies associated with energy systems.
The bank indicated that competition for refined copper has contributed to a reduction in inventories held outside the United States, bringing stocks to seasonal lows.
Goldman Sachs said these developments have added upward pressure to copper prices alongside existing structural limitations on mine supply.
Electrification and Data Centre Investment Support Demand Outlook
Goldman Sachs identified electrification and investment in data centres as important contributors to its projected increase in copper demand.
The bank also cited artificial intelligence infrastructure and energy security programmes as sources of additional consumption.
Alongside industrial demand, inventory accumulation linked to supply security objectives has contributed to competition for available refined copper.
Goldman Sachs expects these demand factors, combined with limitations on mine production and reduced inventories outside the United States, to support its forecast of $15,600 per tonne by December 2027.
The projection represents the bank’s assessment of future market conditions rather than a guaranteed price outcome.