Chile’s National Copper Commission (Cochilco) forecasts a rise in copper prices to $3.85 per pound in 2024 and $3.90 in 2025.
This forecast comes from the recent “Copper Market Trends Report,” which focuses on the metal’s future price, demand, and supply.
The report shows that global copper production is set to rise. In 2024, the production is expected to reach 22.79 million tons, a 5.8% increase from the previous year.
The growth trend continues into 2025 with an anticipated 3.1% rise, resulting in 23.50 million tons.
As a major copper supplier, Chile is projected to produce 5.63 million tons in 2024. This marks a 5.7% increase and represents 25% of global production.
Other significant producers include the Democratic Republic of Congo and Peru, with projected outputs of 2.96 and 2.72 million tons, respectively.
Chile’s contribution is expected to further increase to 6 million tons in 2025. Aurora Williams, Chile’s Mining Minister, expressed optimism about these projections.
She stated that higher price estimates positively impact the mining industry’s financial performance.
Williams attributed the rise in copper prices to several factors. These include changes in U.S. monetary policy and the global shift towards green energy and electromobility.
The minister emphasized the steady increase in electric vehicle production and sales, boosting the demand for copper.
Williams concluded that these trends suggest a promising economic outlook for the upcoming year.
On the other hand, Joaquín Morales of Cochilco noted potential short-term challenges. He mentioned that global geopolitical risks could dampen the price rise.
However, he remains confident about the sustained long-term demand for copper.