Citi sees copper rising to $14,000 a ton in the next three months

Feb 24 (Reuters) - Citi on Tuesday said it turned bullish on copper in the near term and expects prices to rise to $14,000 a ton over the next three months.

Citi noted that near-term downside risks to copper prices appear limited, citing expectations of strong physical and financial dip-buying and upcoming seasonal inventory draws in China in coming months.

Benchmark three-month copper CMCU3 touched its highest price since February 12 on Tuesday, propelled by positive sentiment and firmer demand in top metals consumer China, where markets reopened after a holiday. MET/L

The bank maintained its base‑case forecast for an average copper price of $13,000 a ton in 2026, which it said would be sufficient to broadly balance the global copper market this year.

Citi said it expects a limited U.S.-Iran nuclear agreement or near-term de-escalation would support risk-sensitive assets, including copper. Iran and the U.S. will hold a third round of nuclear talks on Thursday in Geneva , Oman's Foreign Minister Badr Albusaidi said on Sunday.

The bank said it no longer sees COMEX-LME arbitrage dynamics as a significant source of further price upside, citing weaker arbitrage pricing in early 2026 and robust recent inflows of metal into U.S.-linked LME warehouses that are likely to continue in the near term.