Bank of America Predicts Volatile Metals Market in 2025

Metals are set to experience a turbulent year in 2025, according to Bank of America’s latest forecast. The bank, one of the largest financial institutions in the U.S., warns of significant price declines for industrial metals like aluminium and copper, driven by fluctuating global demand and changing trade policies.

Aluminium prices are expected to drop by 6%, averaging $2,813 per tonne, while copper may see a sharper decline of 12%, with an average price of $9,438 per tonne. These anticipated declines reflect broader concerns such as geopolitical tensions and persistent supply chain disruptions.

Trade Tensions and Metals Outlook

Metals markets may face additional pressure due to potential trade conflicts. U.S. President-elect Donald Trump’s proposed 60% tariff on Chinese imports has sparked fears of a trade war. Since China is both a leading producer and consumer of copper, any escalation in tensions could have a profound impact on global markets.

Bank of America notes that the ongoing shift toward cleaner energy might provide some support for metals demand. However, industries like automotive, construction, and electronics are likely to face challenges amid these headwinds. The metals sector will be closely monitoring policy changes and economic developments in the coming months.

China’s sluggish economic growth and a subdued demand outlook have already weighed heavily on base metals. This has amplified concerns about future demand and added to the pressure on prices. As 2025 approaches, stakeholders must prepare for an unpredictable landscape, with potential risks and opportunities shaping the trajectory of the markets.

Metals, while essential to various industries, will need to navigate a complex environment marked by uncertainty and potential trade disruptions.

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