Cochilco raises 2024 copper price forecast
The Chilean Copper Commission (Cochilco) announced on January 15 that it would raise the copper price in 2024 to US$3.85/lb from the previous forecast of US$3.75/lb.
Cochilco said in a statement that the higher forecast was based on "factors such as the normalization of U.S. monetary policy," but more so because of the energy transition and demand for electric vehicles.
"All of these are good conditions for us to raise our price expectations," the report said.
Cochilco expects copper prices to average $3.90 per ounce in 2025.
The report predicts Chile's copper production in 2024 to be 5.63 million tons, an increase of 5.7%, mainly due to the increase in output of Teck Resources' Quebrada Blanca Phase II project, which will produce 6 million tons in 2025.
The agency expects global copper production to be 22.79 million tons in 2024, an increase of 5.8%, and 23.5 million tons in 2025. Copper demand is expected to be 26.13 million tons in 2024, an increase of 3.2%.
Cochilco expects a copper surplus of 176,000 tons in 2024 and a surplus of 170,000 tons in 2025.
