Chile’s copper prices are expected to increase this year to $2.85/lb, 13¢/lb higher than in 2019, as the US-China trade deal’s first phase has brought stability to the global economy.
Copper prices averaged $2.72/lb in 2019, according to a statement from the Chilean Copper Commission (Cochilco), which added that prices are expected to rise to $2.95/lb in 2021.
However, Factors such as the coronavirus in China and tensions between the US and Iran have generated price instability, Víctor Garay, Cochilco’s director of studies and public policies, said in a statement.
Global copper production is expected to recover slowly through 2021. Chile’s copper production is expected to increase by 1.5pc to 5.87mn mt this year over 2019 output.
Production for 2021 is also expected to rise by 0.7pc to 5.91mn mt compared to 2020, Cochilco said.
Chinese copper production will rise by 1.2pc in 2020 and 2021, Cochilco estimated without disclosing volumes.