At the recent London Metal Exchange (LME) Seminar, copper emerged as the leading industrial metal with the most promising price outlook, receiving 46% of votes in an informal poll. This marks a slight decline from last year’s 53%. Analysts presented their forecasts for various base metals, with tin following closely in second place at 36%, an increase from last year’s 23%.
So far this year, tin has outperformed all other LME metals, surging by 31%, while copper and zinc have risen by 16% and 17%, respectively. The tin market is projected to face a deficit of 10,000 metric tons, with its price closely tied to copper, which is widely used in electronic goods.
Other metals received minimal votes in the poll, with aluminum garnering just 4%. Analysts highlighted that an influx of recycled aluminum is likely to pressure prices, with no anticipated scarcity in the next three years.
Morgan Stanley’s analyst Amy Gower noted that Chinese demand for copper is not as pessimistic as suggested by recent headlines, although there is a lack of investment in new mining projects. Copper prices are expected to stabilize around $9,500 per metric ton, with a bullish scenario projecting a rise above the record $11,100 reached in May. As of Monday afternoon, three-month LME copper was trading at $9,895 per ton.