Citi Research Cautious about Copper Prices in Three Quarters, Iron Ore Prices to Have Support from Policy Stimulus

According to foreign news on July 5, Citi Research said that it remains cautious about the copper price trend until the first quarter of 2024. It expects the average copper price in the next three quarters will be $8,000/mt, and traded prices are estimated at $7,500-8,500/mt.

Citi said the reason for its near-term caution on copper prices is that economic growth outside China is expected to continue to be weak, while the services-led recovery in China is not particularly reliant on the metal.

Citi added that the uncertainty of China's steel outlook in the second half of 2023 may put pressure on iron ore prices, maintaining its iron ore price forecast at $100/mt for three months.

Expectations of policy stimulus could support iron ore in the near term, especially if potential measures appear to support steel demand, Citi said.

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