The red metal has had a tumultuous year, falling over 20 percent year-to-date. But prices may rise, despite ongoing challenges, according to London-based Capital Economics.
Underpinning the research house's optimism is confidence that the Chinese economy will avoid a hard landing, alongside a pickup in the U.S. economy and expectations of a supply contraction in 2016 after a raft of production cuts and mine closures in 2015.
"We are cautiously positive that with tightening supply and somewhat stronger demand growth, the scene is being set for a recovery in the copper price," economist Caroline Bain said.
"Investor sentiment will be key. For now, persistent concerns about growth in China and the first rate hike in the U.S. are weighing on sentiment. However, we think these fears are overdone and that, over the course of next year, improving fundamentals will support higher prices."
Bain predicts copper will reach $6,000 a ton by end-2016, up from around $4,750 per ton now.