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Copper prices — traditionally a barometer for the global economy — are expected to soar next year

Sheets of copper cathode are pictured at BHP Billiton’s Escondida, the world’s biggest copper mine, in Antofagasta, northern Chile March 31, 2008.

Ivan Alvarado | Reuters

Copper — traditionally seen as a leading indicator of economic health — has unsurprisingly had a rough year. But analysts expect a resurgence in 2023, even as the global outlook remains highly uncertain.

Some of Wall Street’s biggest banks in recent weeks have suggested a combination of short-term supply tightness and long-term energy transition-related demand will push the red metal north from here.

The downward pressure in 2022 stemmed in part from persistent market expectations for a surplus inflection in the metal market, driven by anticipation of sluggish demand amid slowing global growth and an acceleration of mining activity, Goldman Sachs strategists said in a note last week.

However, this has not come to fruition, and Goldman highlighted that the cathode…

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