Antofagasta: Rising Demand and Squeezed Supply to Push Copper Prices Higher

SEATTLE (Scrap Monster): Leading Chilean miner Antofagasta foresees higher copper prices in 2024, in comparison with the previous year, mainly driven by growing demand for the metal along with constrained supply.

Speaking ahead of the World Copper Conference, Ivan Arriagada, CEO, Antofagasta, noted that the rebound in global economy, rising need for the metal for usage in electric vehicles and solar panels as well as various energy transition initiatives are likely to create a favourable environment for rally in copper prices. The company foresees copper prices in a trajectory towards higher levels, he added.

ALSO READ: Antofagasta Copper Output Surged in Q4 and Full Year 2023

According to Arriagada, there exists significant challenges too boosting copper output. The supply is expected to be lower this year, thus resulting in a deficit market. The closure of the First Quantum mine in Panama coupled with lowered output guidance by leading producers Anglo American and Vale paints a dismal picture regarding supply.

Antofagasta expects that the new desalination plant at Pelambres mine along with new concentrator at Centinela mine will lift the company’s production to around 900,000 metric tons by 2027, significantly higher upon comparison with the 2024 production outlook of 670,000-710,000 metric tons in 2024.