The economic effects of COVID-19 are likely to cause a 200,000mt surplus in global copper this year, according to the Chilean Mining Society (Sonami).
This year, the market could see a 3.5-4pc decrease in demand for copper compared to 2019, according to Diego Hernández, president, Sonami. He added that the demand would increase by 4-5pc in 2021 compared to this year.
Copper supply could also fall 3pc along with a significant reduction in scrap supply this year, Sonami data indicated, though it did not disclose details about the reduction in scrap supply.
Chile’s copper production increased by 4.3pc to 1.4mn mt in the first quarter of this year, compared to Q1 2019, driven by higher output from Codelco, BHP Billiton’s Escondida mine, Collahuasi mine among other.
The country’s copper industry has maintained operations despite COVID-19 related shutdowns that have affected the economy.
Chile’s copper production is expected to reach 5.87mn tonnes this year, while production for 2021 is expected to rise by 0.7pc to 5.91mn tonnes compared to 2020, Cochilco has said.