Citi adjusts copper price forecast amid tariff developments

Citi has revised its copper price forecast in response to recent market developments, including the easing of US tariffs on the metal and increased Chinese buying during price dips. The bank now anticipates a slower depreciation over the next three months than initially projected. Key factors influencing the adjustment include tight scrap supply due to US inventory buildups and sustained bullish positioning by investment funds, as reported by Reuters.

Citi forecasts an average copper price of $8,800 per ton over the next three months, rising to $9,000 per ton in the following quarter. 

Despite this adjustment, the bank maintains a bearish outlook for the next three to six months, citing potential manufacturing slowdowns driven by US tariffs, particularly a 145% levy on China.

Citi advises against buying copper until US tariffs are lifted or trade relations with China improve.