Goldman Sachs Forecasts Copper Price Decline in 2026 Despite Growing Infrastructure Demand

A recent report from Goldman Sachs expects the price of copper to decline next year, despite the metal's increasing demand from power infrastructure. This, alongside constrained mine supply growth, is expected to underpin prices over time. The analysis suggests that while immediate market conditions may lead to price decreases in 2026, the fundamental supply-demand dynamics support stronger pricing in subsequent years.

Looking further ahead, the report projects the metal's price on the LME will reach $15,000 per metric ton by 2035. This long-term outlook favors companies that are well-positioned to capitalize on the eventual price recovery and sustained demand. The divergence between short-term and long-term forecasts highlights the complex interplay between immediate market factors and structural trends in the copper industry.

The constrained mine supply growth mentioned in the report represents a significant factor that will influence copper markets for years to come. As global infrastructure development continues to accelerate, particularly in renewable energy and electrification projects, the demand for copper is expected to remain robust. This creates a challenging environment where supply constraints could eventually lead to substantial price increases despite temporary declines.

For investors and industry participants, the Goldman Sachs analysis provides important insights into market timing and strategic positioning. The projected decline in 2026 suggests potential buying opportunities for those with longer investment horizons, while the $15,000 per metric ton target for 2035 indicates substantial upside potential for well-positioned companies. This dual timeframe analysis helps market participants navigate the volatility inherent in commodity markets while maintaining focus on long-term fundamentals.

The report's findings have particular relevance for companies operating in the mining sector, where capital allocation decisions must balance short-term market conditions with long-term strategic positioning. As noted in the source material, the latest news and updates relating to specific mining companies are available through various financial information platforms. The broader implications of these copper price forecasts extend beyond individual companies to affect global infrastructure development costs, manufacturing economics, and transition to renewable energy systems worldwide.