Citigroup said Tuesday that it is bullish on copper prices in the short term and expects prices to rise to $14,000 per ton over the next three months. The bank noted that downside risks for copper prices are limited in the short term, citing expectations that buying on dips in both physical and financial markets will remain strong, coupled with seasonal inventory drawdowns in China over the coming months. Driven by improved market sentiment and stronger demand from China, the world’s largest metal consumer, the benchmark three-month copper contract hit its highest level since February 12 on Tuesday. The bank maintained its base-case forecast of an average copper price of $13,000 per ton for 2026, stating that this price level is sufficient to bring the global copper market into basic balance this year. Citigroup noted that a limited U.S.-Iran nuclear deal or short-term de-escalation of tensions would boost risk-sensitive assets such as copper. The bank noted that COMEX-LME arbitrage dynamics are no longer a key driver of further price increases, citing weaker arbitrage pricing in early 2026 and continued strong inflows of metal into U.S.-linked LME warehouses, a trend that is likely to persist in the near term.