Organization: Copper prices may remain strong for a longer period of time.

Copper prices are likely to remain strong for a longer period than Jefferies expected. The institution predicts that by 2027, the price of copper on the London Metal Exchange will rise to $6.50 per pound, higher than the previous forecast of $5.50 per pound. Jefferies anticipates that by 2031-2032, copper prices will peak at $8.00 per pound, compared to the previous assumption of $6.50 per pound. "We expect the copper supply gap to average 491,000 tons per year by the end of 2030," Jefferies said. The institution pointed out delays in the recovery of the Grasberg mine. "Kamoa-Kakula has been adjusted to lower recent production and higher costs, while Chile's production in April was the weakest in 23 years," Jefferies said. Metals account for 25% of manufacturing costs in white goods and electric vehicles. Therefore, a 25% increase in copper/metal prices will increase total manufacturing costs by 5%-6% and raise construction costs for data centers by 3%.