SANTIAGO, April 12 (Reuters) - Copper's bull run should continue for at least the next three years, fueled by global supply challenges and hot demand for the metal to power energy transition and artificial intelligence technologies, industry analysts say.
The outlook is an optimistic harbinger for Freeport-McMoRan (FCX.N), BHP (BHP.AX) and other producers as decarbonization and technological shifts fuel copper's latest demand wave after China's rise powered a similar one two decades ago.
But with question marks hanging over a number of key projects, some estimate production will struggle to meet that demand.
These themes are expected to dominate conversations in the Chilean capital of Santiago at the CRU World Copper Conference from April 15-17, the largest annual gathering of industry executives, investors and analysts. Chile is the world's biggest copper producer but its output has faltered in recent years.
But with question marks hanging over a number of key projects, some estimate production will struggle to meet that demand.
These themes are expected to dominate conversations in the Chilean capital of Santiago at the CRU World Copper Conference from April 15-17, the largest annual gathering of industry executives, investors and analysts. Chile is the world's biggest copper producer but its output has faltered in recent years.
"Copper's second secular bull market this century is taking hold," said Citi analyst Maximilian Layton, who expects demand to outstrip supply by 1 million metric tons during the next three years. "Explosive price upside is possible over the next two to three years."
In a report published earlier this week, Layton and Citi said they expect copper prices to touch $12,000 a metric ton by December 2026, a forecast echoed in a similar report from Bank of America. Prices traded near $9,378 a metric ton on Wednesday, near a 14-month high.
