The Chilean Copper Council (Cochilco) reported that the price of copper, a major Chilean export, was US$3.83 per pound this Friday, marking a weekly decline of 1.6%.
This is attributed primarily to Fitch’s downgrading of the US credit rating due to projected fiscal deterioration over the next three years and high government debt, which adversely impacted the commodity.
Cochilco noted that total inventories of refined copper in the three metals exchanges rose 3.6% this week, reaching 6,000 metric tons.
Compared to the end of 2022, inventory decreased by 10% in 2023.
The agency recently adjusted the average price estimate for copper in 2023 to US$3.85 per pound.
For 2024, the forecast is $3.75 per pound.
According to a recent report, global copper production growth prospects for 2023 are modest, with an expected increase of 2.8% from the previous year.
In Chile, a 1% rise in copper production is projected, while a 4.3% increase is expected in 2024.
Refined copper consumption continues to grow on the demand side, with an expected increase of 2.1% in 2023 and 2.4% in 2024.
As for 2024, a 4% increase in refined copper supply and a 3.1% increase in demand are expected, leading to a market surplus.