Bank of America forecasts high lithium yield in 2022 and projects copper value above $4

“Copper is more exposed to the unfolding economic slowdown, compounded by the weakness of China’s real estate sector, that said, a normalization of supply chains, some stimulus and low inventories remain favorable for now, before the market becomes a surplus by 2023.”
Bank of America (BofA), in its report “Mining and metals outlook for 2022”, points out that the main Chilean export, currently at US $ 4.3 per pound, would reach an average price of US $ 4.4 in 2022, while only the following year it would fall below the aforementioned fence, to US $ 3.7.
The BofA, after forecasting that it would trade for US $ 15,823 a ton, also improved its projections for lithium. Now, it forecasts that the soft metal will trade at $25,550 a ton in 2022, up 61.5%.
The report led by Michael Widmer, metals strategist at the financial institution, argues that “the demand for lithium continues to increase exponentially, but a greater supply should alleviate some of the shortages.” However, he warns that when the deficit is reduced “there is a risk that prices will not rise further.”
In fact, by 2023, Bank of America anticipates that the element used in heat-conducting alloys in electric batteries will fall to $16,183. In any case, above the first projection made by the second largest bank holding company in the United States by assets.
For next year, the bank lowered its estimates for aluminum and kept its forecast for nickel intact. While on the side of precious metals will be crucial the rise in interest rates that has already begun to develop globally.

Original source in Spanish