Investing.com -- Bank of America (BofA) analysts forecast a volatile metals and minerals market heading into 2025, influenced by potential trade policies, supply constraints, and demand shifts. In turn it has projected prices for aluminium and copper to decline by 6% and 12%, respectively, with 2025 forecasts set at $2,813 per tonne and $9,438 per tonne.
A possible trade dispute with China could exacerbate market pressures, but structural demand from energy transition investments may provide support. Aluminium supply outside China remains tight, while copper and zinc production face mine supply challenges.
Rising U.S. interest rates and a stronger dollar have weighed on gold, but growing global debt and portfolio diversification are expected to sustain prices, with the 2025 forecast steady at $2,750 per ounce. Silver demand is set to rise, driven by electric vehicles and solar panels, though platinum-group metals remain under pressure.
Overcapacity in China’s steel industry and growing exports are expected to push the iron ore and metallurgical coal markets into surplus. Price stabilization may hinge on production cuts.
Lithium prices are under pressure due to new supply and limited production discipline but may stabilize post-2025. Meanwhile, BofA is bullish on uranium, citing growing demand for nuclear power.
BofA expects the metals and minerals market to face near-term headwinds but sees potential stabilization once uncertainties subside.