Copper’s price is likely to hit fresh all-time highs in coming months, according to an analysis by U.S. investment bank MorganStanley (NYSE: MS).
In a bullish note to clients, Morgan Stanley (NYSE:MS) said that despite some near-term volatility, the price of Copper can be expected to rise further this year due to outsized global demand.
Copper’s price on May 20 hit a record high of $11,101.50 U.S. a ton trading on the London Metal Exchange.
Morgan Stanley sees more gains ahead and forecast that the red metal’s price will end the year around $13,125 U.S. per ton.
According to analysts at the Wall Street firm, copper will continue to benefit from a push into green energy and electrification, and copper mines are unlikely to meet rising demand.
Copper plays a leading role in electricity transmission infrastructure. Demand for the metal is also rising along with growth in ArtificialIntelligence (A.I.) and that industry’s large energy requirements.
Additionally, China, the world’s biggest copper importer, is expected to see an economic rebound in this year’s second half, increasing that country’s demand for copper.
While Morgan Stanley sees copper’s price rising through the remainder of 2024, they cautioned that investors should be prepared for near-term volatility after the metal hit an all-time high.
“We remain bullish on copper as persistent supply challenges widen our deficit for 2024, which looks set to persist into 2025,” wrote Morgan Stanly in its outlook.
The stock of Morgan Stanley has increased 22% over the last 12 months and currently trades at $100.33 U.S. per share.