Ubs Sets Target For Copper

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Ubs Sets Target For Copper

Ubs Sets $9500 Target For Copper Amid Supply Challenges.

Copper prices are above the support level of $8200 per metric tonne. This is a good sign, considering the slow demand from China was expected to lower the copper prices.

Recently, UBS analysts have set a bullish target for copper copper near $9500, around $1300 higher than the current prices. This is a sign that there's a good buying opportunity at the current price of Copper.

Additionally, UBS has also pointed out that the market volatility in Copper remains limited, which means there's a higher chance of further upside from the current levels.

Weak Supply Growth In 2024

One major factor supporting the narrative of a bullish trend in Copper is optimistic supply growth. Various producers of Copper ore, such as First Quantum and Anglo American, have revised their production numbers lower for 2024.

This is a sign that the output of Copper will not see any significant change in 2024. As a result, the copper market is becoming more concentrated and tighter, which could drive the oil prices higher.

According to UBS, the supply of refined Copper during 2024 will see a +3.5% change when we consider that the back inventory of Copper is still below normal; it also hints at a bullish target in 2024.

Although the demand from Europe and the USA remains weak, the one market that has offset most of these challenges is China.

Experts believe that the global drive for decarbonization will also lead to higher copper demand in transportation and electrical networks.

Additionally, the Chinese government continues to announce stimulus measures. So even if some sectors of China's economy show weakness, others will benefit from stimulus, driving copper demand.

Overall, numerous prospects hint at higher copper prices in 2024. On the contrary, there are very few factors that hint at lower prices.

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