Chile, the world’s largest copper supplier, has raised its average copper price forecast for this year and next year. The possibility of copper prices continuing to rise in the near term has increased.
The Chilean state copper commission, Cochilco, announced on May 17th that it has revised its average copper price forecast for this year from $3.85 to $4.30 per pound. They predict that the average copper price next year will rise from $3.90 to $4.25 per pound.
Cochilco analyzed that manufacturers are stockpiling due to high copper prices, but demand remains strong. Cochilco predicted a copper supply shortage of 364,000 tons compared to this year’s demand. By 2025, they forecast a supply shortage of 278,000 tons.
Cochilco analyzed that the value of copper has been increasing for various reasons since early March this year. They predict that demand will outstrip supply due to the suspension of copper mining operations at First Quantum in Panama and the reduction in copper production in Chile and Peru.
Recently, copper prices have been on an upward trend. On May 15th, the copper price traded on the London Metal Exchange rose 1.16% from the previous day to record $11,124.79 per ton. After trading at $9,897 per ton on May 10th, it has been on a continuous rise, settling at $10,000. According to the Korea Resource Information Service, the copper price was recorded at $12,210 per ton as of May 15th.
The securities market also predicts that the strong copper prices will continue.
Hwang Byung Jin, a researcher at NH Investment & Securities, emphasized, “Due to the global mine supply reduction and China’s smelter reduction, copper prices are approaching $10,000 per ton. The demand momentum in the copper market, including the AI boom, data center investment, and power grid investment, can continue.”
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