FQVLF - Citi sees copper slump turning around by 2025 in global growth upswing

2023-06-07 08:57:11 ET

Copper prices extended gains Wednesday to the highest in nearly a month on the " vague hope " that China will add more stimulus to its economy, boosting metals demand.

Stimulus hopes apparently ramped up by data that showed China's overall exports declined much more than expected in May while imports continued to drop.

According to Reuters, benchmark three-month copper ( HG1:COM ) on the London Metal Exchange recently was +0.7% to $8,400/metric ton after touching its best level since May 11 at $8,418/ton.

ETFs: ( NYSEARCA: COPX ), ( NYSEARCA: CPER ), ( JJC ), ( JJCTF )

Potentially relevant stock tickers include ( FCX ), ( SCCO ), ( TECK ), ( HBM ), ( BHP ), ( RIO ), ( VALE ), ( OTCPK:FQVLF ), ( OTC:ANFGF )

Citi analysts forecast a cyclical global growth upswing driving copper prices to an average of $12K/ton in 2025.

The bank believes copper is the most liquid of the few commodities positively exposed to decarbonization-related demand growth, so it sees copper as the "top decarbonization trade within the commodities space and believe now is time to prepare to buy the metal on a medium-to-long-term hedging or investment basis."

More on copper:

• Are Copper Markets About To Feel The Weight Of A $2 Billion Stockpile?
• The Stock Market Says One Thing, The Copper Market Says Another
• Freeport McMoRan Will Make Up A Sizable Part Of Future Energy Markets

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