LONDON: Copper prices climbed on Friday, moving within USD25 of a record high after another bullish forecast by Goldman Sachs highlighted mine supply constraints.
Benchmark three-month copper on the London Metal Exchange was up 0.9 percent at USD11,877.50 as of 1720 GMT. It earlier rose as much as 1.3 percent to USD11,928, within striking distance of the all-time peak of USD11,952 recorded last week.
The metal, widely used in power, construction and manufacturing, is on course to add 3.2 percent this week and is up more than 35percent in 2025.
“Copper remains our favourite long-run industrial metal because it faces unique mine supply constraints and structurally strong demand growth,” Goldman Sachs said in a note on Thursday, reiterating its USD15,000 a ton forecast for 2035.
The dollar index edged up 0.3 percent, capping gains in the LME complex. A stronger greenback makes dollar-denominated metals more expensive for holders of other currencies.
“It’s all about the supply story right now for copper,” said Thu Lan Nguyen, head of commodity research at Commerzbank. “We are not as bullish as other houses.
We are saying that copper most likely will move towards USD12,000 sustainably over the next month, but I think the air is getting thinner.” Whereas high copper prices have incentivised more investment in mine production, depressed nickel prices have prompted top nickel miner Indonesia to cut output, she noted.
LME nickel rose for a third day and was up 1percent at USD14,775 a ton after Indonesia’s government proposed reducing nickel ore production by around one-third to 250 million tons next year.
Aluminium added 1.2 percent to USD2,950.50, climbing for a fourth day and hitting its highest since May 2022, after South32 said it would shut its Mozal smelter in March.
Still, Goldman said it expects copper to outperform aluminium in 2026 as China’s overseas push for critical metals boosts aluminium production. Zinc edged up 0.4 percent to USD3,077, lead gained 1percent to USD1,983.50 and tin was up 0.4percent to USD43,020 after touching its highest since April 2022.
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