The government's forecast for 2023 copper prices, released on Thursday, increased from $3.70 per pound in December to $3.85 per pound in December as worldwide inventories decreased.
Chile also set the estimated 2024 copper price at an average of $3.65 per pound.
“The relaxation of the COVID-19 policy in China; the softening of the North American monetary policy due to the decline in inflation; the expectation of a more moderate recession in Europe than predicted" are helping the metal's price recover, Mining Minister Marcela Hernando said in a statement.
The statement also explained that ”historically low inventories and concern about lower copper supply in the market" contributed to the rise.
A report published on Wednesday showed that copper production in Chile, the world's largest producer of the metal, will grow more slowly this decade and will also require the realization of all projects in the pipeline.
It is also estimated that a global surplus of 160,000 tons is expected for 2023 and 360,000 tons for 2024, which seems to be equivalent to two to five days of copper consumption.
"Given the positive price forecasts, these recorded surpluses will be significant of the second order," the report said.
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