tl;dr
Bank of America raises copper price projections to $15,000/ton by 2027, despite Freeport-McMoRan's mine shutdown. Major banks like JPMorgan and Société Générale highlight supply constraints and demand surges driving bullish trends.
**Bank of America Raises Copper Price Projections Amid Supply Constraints, Bulls Freeport-McMoRan Despite Mine Shutdown**
Bank of America (BofA) has raised its outlook for copper, citing shifting supply and demand dynamics that are increasingly favorable for the red metal. The bank now forecasts copper prices to reach **$11,313 per ton in 2026**, **$13,501 in 2027**, and a potential surge to **$15,000 per ton** thereafter, according to *The Wall Street Journal*. This upgrade reflects growing confidence in the metal’s ability to withstand supply disruptions and meet rising global demand.
BofA’s optimism extends to copper mining giant Freeport-McMoRan, despite the company’s Grasberg mine in Indonesia facing a temporary shutdown following a deadly mudslide earlier this year. The incident resulted in two fatalities, sparking concerns about operational risks. However, BofA analysts, after engaging with Freeport’s CEO, Kathleen Quirk, expressed confidence that the firm’s current valuation of **$42 per share** adequately accounts for the risks associated with the halted mine. The bank has set a **13% higher price target** for Freeport’s stock, signaling its belief in the company’s long-term resilience.
The bullish sentiment is not confined to BofA. **JPMorgan Chase** also highlighted copper’s potential in a recent note, citing “supply-driven tightening” as a key catalyst. The bank predicts London Metal Exchange (LME) prices will average **$11,000 per ton in Q4 2025**, rising to **$11,250 per ton in Q1 2026**. Meanwhile, **Société Générale** analysts warned of a historic supply deficit, estimating that copper will face its **largest shortfall since 2004**, further straining global markets.
Current copper prices stand at **$10,181.50 per ton** on the LME, according to recent data. Analysts attribute the anticipated price surge to a combination of factors, including reduced supply from key producers and heightened demand from sectors like renewable energy and electric vehicles. The Grasberg mine, one of the world’s largest copper sources, has been a focal point of concern, but BofA’s analysis suggests its temporary closure is not enough to derail broader market trends.
The consensus among major banks underscores a tightening copper market, where supply constraints are outweighing demand pressures. As investors and producers alike brace for a potential rally, the metal’s trajectory could have significant implications for global industries reliant on copper, from construction to technology. With prices still below BofA’s 2026 target, the red metal appears poised for a substantial upward move, driven by both scarcity and the transition to a low-carbon economy.