Copper edged higher on Friday and was heading for a weekly jump after another bullish forecast by Goldman Sachs highlighted mine supply constraints, while a firmer dollar capped gains.
Benchmark three-month copper on the London Metal Exchange was up 0.1% at $11,787 per metric ton by 1036 GMT, not far off the all-time peak of $11,952 it struck last week.
The metal, widely used in power, construction and manufacturing, is on course to add 2.4% this week and is up almost 35% in 2025.
“Copper remains our favorite long-run industrial metal because it faces unique mine supply constraints and structurally strong demand growth,” Goldman Sachs said in a note on Thursday, reiterating its $15,000 a ton forecast for 2035.
The dollar index edged up 0.3%, limiting gains in the LME complex. A stronger greenback makes dollar-denominated metals more expensive for holders of other currencies.
“It’s all about the supply story right now for copper,” said Thu Lan Nguyen, head of commodity research at Commerzbank. “We are not as bullish as other houses. We are saying that copper most likely will move towards $12,000 sustainably over the next month, but I think the air is getting thinner.”
Whereas high copper prices have incentivised more investment in mine production, depressed nickel prices have prompted top nickel miner Indonesia to cut output, she noted.
LME nickel rose for a third day and was up 0.7% at $14,745 a ton after Indonesia’s government proposed reducing nickel ore production by around one-third to 250 million tons next year.
Aluminium added 0.4% to $2,927.50, climbing for a fourth day and hitting its highest since May 2022, after South32 said it would shut its Mozal smelter in March.
Still, Goldman said it expects copper to outperform aluminium in 2026 as China’s overseas push for critical metals boosts aluminium production.
Zinc edged down 0.1% to $3,061.50, lead added 0.7% to $1,977.50 and tin advanced 1.4% to $43,430, touching its highest since April 2022.
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