The state-run Chilean Copper Commission (Cochilco) said on Monday it was raising its projections for 2024 copper prices to $3.85 per pound, up from $3.75.
In a statement, Cochilco said it was raising the estimate due to “factors like the normalization of monetary policy in the United States,” but mostly due to demand from the energy transition and electric vehicles.
“All of these are good conditions that allow us to foresee good expectations for price,” the report said, adding that it expects average prices of $3.90 in 2025.
The report said it expects Chilean copper production to rise by 5.7% to 5.63 million metric tons in 2024, largely due to more production from Teck’s Quebrada Blanca II project, and 6 million tons in 2025.
The agency foresees global copper production rising 5.8% to 22.79 million tons in 2024 and 23.50 million tons in 2025. Global demand is expected to rise 3.2% to 26.13 million tons in 2024.
Cochilco is expecting a global copper surplus of 176,000 tons in 2024 and 170,000 tons in 2025.
Source:norvanreports