Investing.com — Bank of America (BofA) analysts predict a volatile metals and minerals market will emerge in 2025, influenced by potential trade policies, supply constraints and shifts in demand. In turn, the country has forecast aluminum prices to fall by 6% and 12% respectively, with 2025 forecasts set at $2,813 per tonne and $9,438 per tonne.
A possible trade conflict with China could increase pressure on the market, but structural demand from investments in the energy transition could provide support. Aluminum supply outside China remains tight, while copper and zinc production faces mining supply challenges.
Rising US yields and a stronger dollar have weighed on gold, but growing global debt and portfolio diversification are expected to sustain prices, with the 2025 forecast remaining steady at $2,750 per ounce. Silver demand is expected to rise, driven by electric vehicles and solar panels, although platinum group metals remain under pressure.
Overcapacity in China’s steel industry and growing exports are expected to push the iron ore and metallurgical coal markets into surplus. Price stabilization may depend on production cuts.
Lithium prices are under pressure due to new supply and limited production discipline, but could stabilize after 2025. Meanwhile, BofA is bullish on uranium, citing growing demand for nuclear power.
BofA expects the metals and minerals market to face headwinds in the short term, but sees potential stabilization once uncertainties subside.
