BREAKING: Copper prices have plunged 0.7% after reaching an all-time high last week, signaling critical shifts in the market. Goldman Sachs analysts have just released a report cautioning investors that any potential breakout in copper will likely be short-lived.
The report, which analyzes supply-demand balances for 2026, indicates that the recent surge in copper prices was fueled by a weaker dollar, optimistic growth projections from China, and a tighter physical market. Despite this bullish sentiment, Goldman Sachs warns that market positioning is now at the 99th percentile, suggesting that investor enthusiasm may be overstretched.
Officials highlight that while there is potential for further investment in copper, the physical market is not yet undersupplied. Analysts anticipate a wave of investor exits starting in early 2026, as the current dynamics do not support sustained price growth.
In a significant counterpoint, Robert Friedland, CEO of Ivanhoe, emphasized that global demand stands at approximately 28 million tonnes. He pointed out the urgent need for major investments in the US power grid, which may further complicate supply dynamics.
Market watchers are closely monitoring these developments, as they could have far-reaching implications for global copper supply and investment strategies. With the stakes high, the time to act is now.
Stay tuned for more updates as this story develops. Share your thoughts and insights as the copper market continues to evolve.
