Bank of America BofA Securities commodity strategist Michael Widmer is raising price forecasts on a host of commodities,
“Having been bullish most mined commodities in 2020, we expect prices to rally further from here on 3 macro themes 1) stimulus, 2) reflation and 3) rebound of the global economy. Hence, we lift price forecasts especially for copper, which we see averaging $9,500/t ($4.31/lb) in 4Q21 [up 15 per cent from previous estimate, current price US$8009/t] , with the market likely flipping into a deficit, as inventories are low. Similarly, we are reinforcing our view that iron ore should stay higher for longer so prices are set to average $135/t this year, compared to our previous expectation of $100/t; that said, 2021 will likely be split into two halves, with a stronger 1H likely followed by a weaker end to the year.