Bank of America Analysts Predict Volatile Metals Market in 2025
In a recent report, Bank of America (BofA) analysts have forecasted a turbulent metals and minerals market for the year 2025. Factors such as potential trade policies, supply constraints, and demand shifts are expected to contribute to the volatility.
According to the forecast, prices for aluminium are projected to decline by 6%, with a 2025 price set at $2,813 per tonne. Similarly, prices for are expected to drop by 12%, with a forecasted price of $9,438 per tonne.
The possibility of a trade dispute with China could further exacerbate market pressures. However, structural demand from energy transition investments may offer some support. Aluminium supply outside China remains tight, while copper and zinc production face challenges due to mine supply constraints.
Gold prices have been impacted by rising U.S. interest rates and a stronger dollar. Despite this, the forecast for 2025 remains steady at $2,750 per ounce, supported by global debt levels and portfolio diversification. Silver demand is expected to increase, driven by the electric vehicle and solar panel industries, while platinum-group metals continue to face pressure.
The steel industry in China is experiencing overcapacity, leading to growing exports and a surplus in the iron ore and metallurgical coal markets. Price stabilization in these markets may hinge on production cuts.
Lithium prices are facing pressure from new supply sources and production discipline issues, but there is optimism for stabilization post-2025. On the other hand, BofA is bullish on uranium, citing a growing demand for nuclear power.
Overall, BofA anticipates near-term challenges for the metals and minerals market but sees potential for stabilization once uncertainties subside.
Analysis:
This article highlights the forecasts and trends in the metals and minerals market for 2025 as predicted by Bank of America analysts. It provides insights into the factors influencing prices of various commodities such as aluminium, gold, silver, and uranium. Understanding these trends can help investors make informed decisions about their portfolios and prepare for potential market fluctuations in the coming years.