Goldman Says Copper Bear Market to Last Years as Gluts Build
- Commodity outlook prompts bank to cut Glencore's target price
- Stockpiles set to expand through March, bank forecasts
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Copper will slump as the U.S. Federal Reserve starts to raise interest rates, demand growth stalls in China and stockpiles surge, according to Goldman Sachs Group Inc., which stood by a year-end forecast that signals the biggest annual drop since the global financial crisis.
Copper prices will probably drop to $4,800 a metric ton by the end of December and $4,500 at the end of next year, analysts including Max Layton and Jeffery Currie wrote in a report. The metal fell 0.8 percent to $5,015 by 1:22 p.m. in London. Separately, the bank cut the target price for Glencore Plc shares, citing a weaker commodities outlook. The miner and trader’s stock dropped as much as 8.7 percent.