Citi Research held a short-term bullish outlook on copper prices, forecasting that they will reach USD14,000 per ton in the next three months. Although the price trend is difficult to predict accurately, the broker believed that the short-term risk is skewed towards the upside, expecting investors to buy on dips. Moreover, after Chinese New Year, the replenishment of China's supply chain inventories will support copper price trends.Citi believed that the downside risk for copper prices is limited and is instead bullish about the upside risk. This is due to investors' optimism towards the cyclical growth of copper prices, as well as factors like de-dollarization, currency depreciation, and resource security, leading them to build more physical asset holdings. Related NewsChina Daye Non-Ferrous Metals (00661.HK) Full-Year Net Profit RMB53.548 Million, Up 33.2%, No DividendFurthermore, potential further supply disappointments also present upside risks. Therefore, the broker maintained its forecast for this year's average copper price at USD13,000 per ton, believing that this price is sufficient to keep the global copper market's physical supply roughly balanced this year.
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