The Chilean Copper Commission Raised 2022 Copper Price Forecast

SEATTLE (Scrap Monster): The Chilean Copper Commission (Cochilco) lifted its copper price projection for the current year to $4.40 per pound. This comes amid anticipated scarcity of the metal on account of the Russia-Ukraine conflict. It must be noted that the technical agency had projected copper prices for the year at $3.95 per pound during early January this year.

According to Cochilco press release, the latest price rise has been influenced by economic factors dominated by the reduced inventories in metal markets and the risk that the global supply of the metal is unlikely to meet expectations. For 2023, the price projection has been raised to $3.95 per pound, compared with $3.80 per pound in January. Also, it projected 2.6% year-on-year surge in Chilean copper production during the current year, with yearly production expected to touch 5.78 million tonnes.

Though the projected price increase looks good for Chile- the world’s topmost copper producer, not all the price increase will be reflected in tax collection, as there will be simultaneous jump in fuel prices, steel, maritime transport and mining supplies.

As per market experts, there are high chances of the upward projection getting corrected in the upcoming months if the war in Ukraine leads to restriction of Russian copper supplies or elevated oil and energy prices.

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