Saturday , June 12 2021

Chilean Cochilco agency reduces the copper price estimate and forecasts of the adjusted global deficit AmericaEconomy



SantiagoThe Chilean Copper Commission (Cochilco) slightly lowered the forecast of the average metal price for this year, and in 2019. On Thursday, due to the effects of the trade war between the United States and China.

Cochilco lowered its estimates for this year to an average metal value of 2.97 USD per pound, from previous calculations of 3.0 USD. In 2019, the agency forecasted a price of 3.05 USD per pound from 3,10 USD.

During the presentation of the report on the copper market in the third quarter, Víctor Garay, director of research for Cochilco, said that in the last two months of this year, metal should revolve around its latest values, but with high volatility. .

Together with price estimates, the agency forecasted production of 5.76 million tonnes of copper in Chile this year, an increase of 4.7% year on year.

Cochilco stressed that in 2019, the Chilean copper production would record increases in interim period by 3.1% and 1.4%, respectively.

The planned production for 2019 would be historically the highest.

The agency, however, forecasts a small copper deficit in the global market.

"The situation of supply and demand for copper indicates a consolidation of the forecast of the metal deficit in 2018-2020, although at limited levels," said Pablo Terrazas, Undersecretary of Coal Mining in a statement.


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