Bank of America has increased its long-term copper price projection to $12,000 per ton as the bank incorporates continuing supply constraints into its commodities outlook.
The new forecast represents a 20% increase and is equivalent to $5.44 per pound when expressed in 2026 dollars, according to the bank’s commodities update.
Bank of America strategists cited supply issues as the main factor behind the revised estimate and copper’s continued price strength.
The bank said the commodities market has experienced more than 12 months of policy developments and other market surprises, while the conflict in the Middle East continues to present a potential source of price volatility.
Its strategists also identified downside risks to the copper outlook. These include a potential demand shock resulting from energy prices and the possibility of a pause in capital spending on data centres.
Changes to Bank of America’s other commodity price forecasts were limited. The bank reduced its 2027 aluminium forecast by 5% to $3,625 per ton.
The strategists also said higher interest rates and a stronger US dollar were contributing to a bearish outlook for gold prices.
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