Jefferies Raises Base Metals Forecasts on Demand Outlook

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June 8, 2026 — Jefferies, an investment bank, has improved its forecast on the base metals sector due to better fundamentals and the strengthening macroeconomic environment in favor of industrial commodities.

Such improvement stems from optimistic forecasts regarding consumption trends in industrial sectors, especially those related to metals used in construction and manufacturing processes.

Copper and Key Metals Outlook Adjusted

Jefferies has revised its estimates regarding base metal prices for copper, aluminum, zinc, and nickel due to higher supply pressures and unchanged demand forecasts.

In particular, the bank stressed that the need for metals for manufacturing will continue to play a crucial role in price formation as global manufacturing output looks set to stabilize.

Demand Resilience Supports Market Sentiment

Improved predictions are founded upon the understanding that demand for base metals is faring much better than anticipated despite the uncertain outlook regarding the global economy.

Base metals demand will remain supported by infrastructure investments as well as industrial consumption.

Supply and Macro Factors in Focus

The other factor highlighted by Jefferies is that there is supply restriction on some metals, coupled with demand, which would help maintain prices over the intermediate period.

But it all depends on the general state of the global economy and financial markets.

Metals Sector Outlook Improves

Overall, the updated forecast signals a more constructive view on the base metals sector, with Jefferies expecting improved pricing conditions compared with earlier estimates.