The state-run Chilean Copper Commission (Cochilco) announced that it slightly raised its forecast for the price of copper for this year to US $ 4.23 per pound, supported by the rebound that the metal has experienced this year.
In September, the entity had forecast a price of US $ 4.20 for 2021.
“For next year a better balance between supply and demand of copperHowever, the market would continue in a deficit condition, although with a marginal magnitude”Said the agency.
For 2022, Cochilco maintained its projection that the metal will average about $ 3.95 per pound.
Nevertheless, Cochilco He acknowledged that there are risks that may pressure the value of the red metal downwards, the main short-term being the evolution of the COVID-19 pandemic with the arrival of new variants.
What’s more “In addition, the rise in inflation in the United States, the economic slowdown in China, specifically, the debt situation of the real estate sector that concentrates about 30% of the country’s copper consumption, and the stress of the maritime supply chains that has generated increases in rates and freight”, He detailed.
In addition, the agency projected a production volume of Chile of 5,676 million tons of copper for this year, which represents a year-on-year decrease of 1%. For 2022, the estimate is of an advance of 2.5% to 5,818 million tons.
Chile is the world’s largest copper producer, followed by Peru.
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