Goldman Sachs flags risks to $15,400/t copper price forecast for 2027

Goldman Sachs group

Today 04:40

Nov 12 (Reuters) - Goldman Sachs said on Thursday it sees downside risks to its 2027 copper price forecast of $15,400 a metric ton after the US midterm elections, citing AI-related positioning and lower US tariff expectations.
"The main risk to our forecast stems from positioning rather than physical demand," Goldman Sachs said in a note, referring to AI-related market exposure
Investors have become more cautious about the AI boom amid concerns that a Democrat-controlled Congress could slow AI investment and data-centre expansion
Benchmark three-month copper on the London Metal Exchange CMCU3 was up 0.2% at $13,612 per ton but headed for a weekly loss amid an AI rout MET/L 
If positioning stays at current levels, copper prices could average around $14,600/ton in 2027, Goldman Sachs said
Goldman Sachs said lower tariff expectations put its US stockbuilding assumption at risk but highlighted that the Democratic sweep does not eliminate the tariff risk
"We estimate copper would average around $14,500/ton in 2027, with further downside if most of the US inventories built up this year flowed back to the rest of the world," it said 

 (Reporting by Ashitha Shivaprasad in Bengaluru; Editing by Subhranshu Sahu)
 ((Ashitha.Shivaprasad@thomsonreuters.com;))