A report on Mineweb.com says Citigroup is predicts "the copper price is bottoming, and will move sharply higher in 2009 and 2010."Citigroup increased its price forecast for copper from US$3.50 to $5 per pound in 2008, from $3 to $5.50 per pound in 2010, and upped its long term price from $1.45 to $1.60 per pound.
One of the driving forces is continued rapid economic growth in underdeveloped nations. Citigroup says Chinese copper demand is expected to increase at around 15% per year.
Another factor is that copper production does not seem to be growing to keep pace with demand.