UBS: Raises copper price forecasts for this year and next by 7% and 4% respectively

On July 3 (Thursday), a report released by UBS showed that it had raised its copper price forecasts for 2025 and 2026 by 7% and 4%, respectively, to $4.24 and $4.68 per pound, reversing its earlier more cautious demand outlook as the significant impact of tariff uncertainties had faded.

Although tariff uncertainties may lead to a decrease in demand from end-users, UBS's base case scenario forecasts that demand will return to trend levels within the next 12 months. The recovery of traditional end-use markets such as Europe and the US will support copper prices, with demand in these markets driven by restocking and long-term drivers such as electrification, Germany's fiscal policy, defense, and AI industries.

Supported by favorable supply-side dynamics and long-term demand drivers, UBS maintains a relatively optimistic view on copper prices.

(Wenhua Comprehensive)