Deutsche Bank is bullish on copper based on increasing supply risks, resurgent demand from China and other macro factors it said would continue to support demand for the red metal.
The bank raised its near- and medium-term copper price forecast 17%, its long-term forecast by 14% and supply growth to about 2.5%, according to an analyst note Deutsche Bank issued earlier this week on Wednesday.
Solid near-term demand from China and the rest of the world, along with accelerating green copper demand from electric vehicles and renewables "translates into a tight market," the bank said.
"Given the challenging supply outlook and solid demand recovery, copper prices should remain structurally strong," it said. "As such, we believe that copper equities can continue to re-rate."