However, Goldman warned that copper, which is exposed to macroeconomic headwinds, is currently exposed to diverging monetary policies, deflation and deleveraging in China, the largest consumer of copper.

Moreover, Goldman believes that as China shifts from government spending and investment-fueled growth to private-sector consumption, the country’s copper demand will continue to fall.

Earlier in July, Deutsche Bank also cut its copper projections due to weak Chinese demand. DB also expects rising supply in 2016 on new mine commissions, which could cause copper to “remain vulnerable to periodic bouts of ‘shorting.'”

“The anti-corruption checks that the government implemented for large projects has delayed orders for cable from state-owned power firms,” Grant Sporre, head of metals research at Deutsche Bank, said in the report.

For more information on the copper market, visit our copper category.

Max Chen contributed to this article.