Copper: Incentive price regime expected to persist – Deutsche Bank

💡 DMK Insight

Copper’s projected peak at $13,000/t in Q2 is a game-changer for traders: The forecast from Deutsche Bank highlights a crucial intersection of supply constraints and rising demand due to electrification. With mine supply being inelastic, any disruptions could push prices even higher before the anticipated moderation kicks in. Traders should keep an eye on production reports from major mines, as any delays or issues could lead to price spikes. Moreover, this scenario could ripple through related markets, particularly in sectors like renewable energy and electric vehicles, where copper is a key component. If you’re trading copper futures or ETFs, watch for resistance levels around $13,000/t and be prepared for volatility as the market reacts to supply news. The real story is how quickly production can ramp up; if it lags, we could see prices sustain above forecasts longer than expected. For now, keep an eye on Q2 developments and any shifts in mine output, as these will be critical in shaping the copper market’s trajectory.