Copper prices have reached historic highs, propelled by renewed optimism fueled by Citigroup’s ambitious new price forecast. The price of copper rose by 1.9% to $11,662 per ton, surpassing the previous record set just a week ago. The market is gaining momentum amid expectations of a supply deficit, as traders speculate that increasing US inventories may draw copper from other regions.

Citi’s baseline scenario projects an average copper price of $13,000 per ton in the second quarter. Analysts led by Max Layton are confident that the rally will continue into 2026 due to a combination of bullish factors, including a more favorable macroeconomic environment, improved fundamentals, and growing demand. Experts anticipate that global end-use copper consumption will rise by 2.5%, propelled by Federal Reserve rate cuts, fiscal stimulus in the United States, Europe's rearmament, and the ongoing global energy transition.

Since the beginning of the year, copper prices on the London Metal Exchange have climbed by more than 30%, with the rally gaining momentum in recent weeks due to concerns that the metal may flow into the US in anticipation of potential import tariffs. This scenario heightens the risks of inventory depletion in other key hubs.

Last Friday, the price of copper on the London Metal Exchange increased by 1.8% to $11,650.50 per ton. Growth also extended to other metals. Aluminum gained 0.3%, nearing its highest close since 2022, while zinc climbed by 0.6%. Markets are clearly bracing for a continued bull cycle in copper prices—Citi has merely formalized what traders have long suspected.