SEATTLE (Scrap Monster): Antofagasta noted that copper market has solid fundamentals amidst volatility. It foresees elevated prices for the metal over the next twelve-month period. The views were shared by Ivan Arriagada, CEO in an interview during the CRU-CESCO World Copper Conference held recently in Santiago.
The copper price forecast is based on the key role played by copper in energy transition, especially with electric cars. The market is likely to have solid fundamentals in the short term and at least over the next 12 months. The existing supply chain conditions and inflation will lead to market tightness. The prices are expected to remain at recent high levels.
Meantime, as the world economy enters a phase of lower growth on account of the ongoing tensions between Russia and Ukraine, the prices may witness more volatility, especially in 2023.
Antofagasta expects to produce 660,000 to 690,000 tonnes of copper during the current year. The company aims to achieve total production of 900,000 tonnes by 2026. Furthermore, it plans to make investments, which in turn will help the company sustain the production levels, Arriagada noted.
The suspension of renewal of federal licenses has impacted the Twin Metals project in the U.S. It expects a reversal in decision, so as to be able to implement the project by the end of the decade.