Bank of America: Lowers copper and aluminum price forecasts, expects heightened volatility.
Published:
2025/04/10
Bank of America warned that metal market volatility has intensified due to ongoing trade tensions, leading it to lower its 2025 price forecasts for copper and aluminum, citing uncertainties surrounding U.S. tariffs and global policy responses.
Bank of America strategists wrote in a report: "Amid changing rules, volatility is taking center stage. We believe volatility will intensify as tariff and trade policy actions – along with reactions to these measures – take effect."
The bank lowered its 2025 copper price forecast by 6% to 8 , 867 permetricton ( 8,867permetricton(4.02/lb), while also cutting its aluminum projection, citing demand risks from slowing global growth and potential dollar strength. Coal price forecasts were likewise reduced, whereas iron ore estimates saw a modest upward revision due to improving fundamentals.
Meanwhile, Bank of America recently raised its gold price forecast, supported by macroeconomic uncertainty and investor risk aversion. "The uncertainty is unfavorable for global growth competition (including the U.S.) and could negatively impact metal prices," the bank said.
"We believe tariffs are detrimental to both consumers and industries," the bank added. While deregulation and tax cuts may provide some support to U.S. economic growth, Bank of America cautioned that these measures are unlikely to fully offset the loss in global demand.
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