Peru, the world’s second-largest copper producer, saw a slight decrease in production in January. With the recent surge in copper prices, all eyes are on whether Peru’s production decline will have an impact.
Peru’s Ministry of Energy and Mines reported on the 19th (local time) that the country’s copper production in January was about 205,375 tons, down 1.2% from last year. This figure is nearly 50,000 tons less than the previous month’s production of 255,000 tons.
The Ministry of Energy and Mines attributed the decline to decreased production at major mines. Indeed, production at the Las Bambas mine, operated by Chinese mining company MMG, fell 17% during the same period, while copper production at the Cerro Verde mine, managed by American mining company Freeport-McMoRan, decreased by 13.4%.
However, they expect copper production to recover slowly in the future. Romulo Mucho Mamani, Minister of Energy and Mines, said, “Peru’s copper production will reach 3 million tons this year, following last year’s 2.76 million tons.”
The focus is on whether decreasing Peru’s copper production will increase copper prices.
In a report, Goldman Sachs in the U.S. predicted that this year’s copper price would reach $10,000 per ton, and Citibank in the U.S. expected the price next year to rise to $15,000 per ton. This prediction is that the copper price will increase about 40% more than the record high of $10,730 recorded in March 2022.
The spot price of copper traded on the London Metal Exchange (LME) also set a record high this year at $8,973 per ton. The copper price fluctuated last year and has rebounded quickly since this month. It’s predicted to surpass the $9,000 mark soon.
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