Swapping aluminum for copper will maintain China’s resources, group says
China depends on overseas imports for 60% of its aluminum resources as opposed to 70% of its copper resources.
The Chilean Copper Commission (Cochilco) on Thursday raised its projection for average copper prices in 2023 citing a weaker US dollar in global markets, perceived supply risks and an expected 5% economic growth in China.
State-run Cochilco said it now projects price for copper this year at $3.90 per pound, up from a January estimateof $3.85. Prices would then slow down next year to an average $3.80 per pound, it added.
Mining Minister Marcela Hernando said the fresh forecast was “good news” for Chile, the world’s largest copper producer, whose economy is largely driven by the mining sector.
The fresh projections, she said, point to a lower global supply of copper this year, as key projects have delayed entry into service while lower production at some operating deposits could affect normal output for some companies.
According to Cochilco, the world market for refined copper will have a deficit this year of 67,000 tonnes, based on a global demand forecast of 25.74 million tonnes, up 2.2% from the previous year.
In 2024, Cochilco added, the market would swing to a surplus of 396,000 tonnes.
(By Natalia Ramos; Editing by Steven Grattan)
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