Rising trend like a rainbow! Copper prices continue to rise to record levels, with Citibank joining the bullish camp.

The copper price trend is hot this week. After hitting a new historical high on Wednesday, it continued to rise. The bullish price outlook released by Citigroup also injected new momentum into the market, with traders expecting that stockpiling in the United States will lead to supply shortages. This industrial metal has broken through the previous high set earlier this week and continued to rise. As of the time of writing, copper prices on the London Metal Exchange rose by 2.12% to $11,685.70 per ton. In a report on Friday, Citigroup analysts pointed out that under their basic assumptions, copper stockpiles are accumulating in the United States, creating shortages in non-U.S. regions. The average copper price in the second quarter is expected to reach $13,000. Citigroup analysts Max Layton and others stated, "We are confident that copper prices will continue to rise before 2026, supported by multiple bullish catalysts, including gradually improving fundamentals and macro background." They predicted that global end-consumer demand will increase by 2.5% next year, driven by a low interest rate environment, U.S. fiscal expansion boosting economic growth, and Europe restructuring its defense and energy sectors. Copper, a key component in pipelines, cables, and electric vehicles, has seen its price rise by over 30% on the London Metal Exchange this year. The upward trend accelerated in recent weeks due to growing market concerns that to avoid potential import tariffs next year, copper will flow massively to the United States, depleting stocks in other key regions. In preparation for this potential shortage, Mercuria Energy Group trading company has reportedly ordered the extraction of approximately $500 million worth of copper from London Metal Exchange warehouses. A report on Thursday stated that the copper market will enter a structural shortage next year and over the next decade, shortages will continue to expand due to strong demand and limited supply. However, other analysts have given more conservative outlooks on the future of copper in recent days. Led by Macquarie Group analyst Peter Taylor, a report on Thursday stated that while copper prices are expected to remain volatile and may easily reach new highs, prices above $11,000 per ton are not sustainable as the global market is not tight at a physical level. Global exchange copper inventories have surged to over 656,000 tons, the highest level since 2018, with around 60% stored in warehouses under the U.S. COMEX exchange. Macquarie's view echoes Goldman Sachs' cautious stance earlier this week, as they predict a copper shortage will not occur until 2029. Other metals have also risen, with aluminum prices reaching the highest closing price since 2022 and zinc prices rising by 0.9%.