11:15 AM EDT, 05/24/2024 (MT Newswires) -- The risk of a sharp copper price correction is "very high" amid a price spike driven by investor sentiment and reacceleration in global growth, Macquarie said in a Thursday note.

Macquarie expects copper prices to ease from their recent highs to average US$9,800 per tonne in the third quarter, before recovering back up to an average of US$10,500/t in the fourth quarter if a projected supply deficit this year starts to materialize.

Macquarie also reduced its 2024 forecast copper supply deficit from -244,000 tonnes to -86,000 tonnes, citing increased demand that is more than offset by slower Chinese demand growth.

Copper futures touched a record high above US$11,000 per tonne on Monday.