SANTIAGO - Chile’s Cochilco copper commission said on Wednesday that it was significantly raising its projection for the price of copper this year to $4.30/lb.
In January, Cochilco had forecast a price of $3.30 for 2021, but said it was updating its projection because of expectations of a short-term deficit through 2022 of refined copper and a drop in inventories in warehouses tracked by the London Metal Exchange.
Cochilco said that increased speculation in the market was playing a role in bolstering copper, adding: "This could push the price to new highs in the short term."
The commission also predicted that copper production out of Chile would hit close to 5.8-million tonnes this year, a year-on-year increase of 1.8%, but below its previous forecast of just under 6-million tonnes.
Chile is the world's largest copper producer.