Copper outlook strengthens as supply pressure builds

Kefi-Gold-and-Copper-plc

Copper prices are gaining fresh investor attention as supply concerns intensify and major market forecasts move higher.

Goldman Sachs has raised its end-2026 copper price target to $13,735 a tonne, up from $12,465. The change reflects a tighter market outside the United States, where available supply is being squeezed by weak global mine production growth and a surge in US stockpiling.

The London Metal Exchange three-month copper price was trading at $13,674.50 a tonne in early activity, supported by concerns that metal is becoming harder to source in key markets. Supply availability is becoming more uneven, and that can support stronger pricing if demand remains resilient.

US copper inventories have risen sharply. Comex stocks increased by more than 9% to 640,181 short tons, equal to 580,762 tonnes. Goldman now expects US copper inventories to rise by about 900,000 tonnes this year, compared with its earlier forecast of 550,000 tonnes.

If more copper is held in the United States, buyers in other markets may face reduced access to metal. This could keep pressure on global supply chains and support London pricing.

Goldman’s base case assumes there will be no US copper import tariffs in 2026. Any change to that assumption could affect how companies build inventories and manage supply risk. Investors should therefore watch US trade policy closely, as it may influence both pricing and regional market flows.

KEFI Gold and Copper plc (LON:KEFI) is an exploration and development company focused on gold and copper deposits in the highly prospective Arabian-Nubian Shield. The Company operates in Ethiopia and Saudi Arabia with projects including Tulu Kapi project, Jibal Qutman EL and Hawiah.

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