Chile’s state-owned Copper producer estimates manufacturing losses at its El Teniente mine as a result of tunnel collapse and the ensuing manufacturing stoppage lasting a number of days at 20-30 thousand tons, Commerzbank’s commodity analyst Carsten Fritsch notes.
World demand for refined Copper is predicted to rise by 2.4%
“In consequence, Chile’s Copper manufacturing may very well be additional diminished this yr. The state Copper fee Cochilco has already revised its manufacturing forecast for this yr downward. It now expects a rise of only one.5% in comparison with final yr, to five.58 million tons. Beforehand, it had assumed a development price of three%.”
“The downward revision was prompted by decrease manufacturing in June on the Escondida mine, the world’s largest, and on the likewise massive Collahuasi mine. For subsequent yr, it continues to anticipate a rise of three%, however from a decrease stage. Manufacturing is due to this fact anticipated to be solely 5.75 million tons, which is 220,000 tons under the earlier forecast. This might imply that Copper mine provide stays tight.”
“On this context, Cochilco factors out that development in smelting capability, significantly in Asia, is outpacing the rise in provide and that costs are due to this fact prone to stay above their long-term averages. World demand for refined Copper is predicted to rise by 2.4% to 27 million tons subsequent yr. Of this, 15.8 million tons are anticipated to return from China.”
