The 2024 adjustment, Cochilco stated in a report, was associated to “macroeconomic weak point in the primary consuming international locations” and “the postponement of the beginning of the financial coverage price discount cycle in the US”.
The fee additionally cited “geopolitical uncertainty and the buildup of inventories within the Asian market,” however famous costs would stay above $4.00 per pound – a key degree it expects to be maintained over the subsequent decade.
Cochilco additionally stated that Chile’s copper manufacturing is anticipated to extend by 3% in 2024 from the earlier 12 months to five.41 million metric tons, in need of the beforehand estimated 5.5 million tons.
In 2025, manufacturing would develop 6% to five.7 million tons, Cochilco added. The Andean nation is the world’s largest copper producer.
The fee added that the refined copper market is anticipated to be roughly balanced in 2024 and 2025.
“It’s estimated to be in a slight deficit in 2024, with 12,000 tons, and surplus in 2025, with 13,000 tons,” markets coordinator Victor Garay stated. “This forecast implies a related change from the earlier estimate, when a deficit was foreseen.”
(By Fabian Andres Cambero and Natalia Siniawski; Modifying by Gabriel Araujo)