Chile's Antofagasta Anticipates Copper Demand to Remain Unaffected by Tariff Turmoil

On Tuesday, April 8, a senior executive from Antofagasta in Chile stated that the trade disputes triggered by US tariffs have increased the risk of metal demand, but he anticipated that artificial intelligence and other technologies might offset any traditional consumption losses caused by economic weakness. He also mentioned that the US government's policies could create a more favorable environment for mining investments. The tariff hike announced by the US last week has already caused fluctuations in financial markets and driven a sharp decline in copper prices. Ivan Arriagada, CEO of Antofagasta, previously stated in an interview that he expects the supply of copper needed for construction and the transition to a low-carbon economy to remain limited. This means he is more concerned about the impact of trade disputes on the broader economy rather than the resilience of the copper market itself. Trade disputes could ultimately reduce the demand for copper. Arriagada noted that if a global economic slowdown undermines the demand for copper in construction and infrastructure, he expects the use of data centers, renewable energy, and artificial intelligence to fill this gap. The US has not yet announced specific measures for copper but is studying potential tariffs. Arriagada stated that as the world's largest copper producer, Chile is in a favorable position to avoid US tariff hikes because the US has a trade surplus with Chile, and Chile is a free trade partner of the US, providing over half of the US copper imports. London-listed Antofagasta operates four copper mines in Chile and is developing one in the US. The company aims to produce between 660,000 and 700,000 mt this year, after producing 664,000 mt last year. The Twin Metals copper-nickel mine project in Minnesota needs to resolve litigation related to permits before obtaining the necessary approvals. Arriagada mentioned that before the US announced its tariff decision last week, US customers stockpiled goods in various sectors, but Antofagasta only supplied a small additional amount of copper to the US, without disclosing the specific quantity. For more updates on the copper industry chain, you are welcome to attend the CCIE 2025 SMM (20th) Copper Industry Conference and Copper Industry Expo, hosted by SMM, which will be held grandly in Nanchang, Jiangxi from April 22 to 25, 2025. Over 3,000 industry elites, representatives from upstream and downstream enterprises of the copper industry chain, government officials, industry associations, third-party equipment, logistics and warehousing, and academic experts will gather together. The conference covers mines, smelting, copper processing, trade, recycling, and end-use applications, encompassing the entire copper industry chain. At the event, more than 100 exhibitors will showcase the latest copper processing and smelting equipment, high-quality raw material suppliers, and new-type copper-based materials, highlighting the innovation and vitality of the copper industry. The conference features a variety of exciting activities: the main forum focuses on global copper market trends, raw material supply, policy impacts, and market directions. Sub-forums delve into specific areas such as electrical power transmission and distribution, secondary copper, copper-based new materials, hardware and plumbing, and ESS, exploring industry hot topics. During the conference, there will also be a two-day field trip to 12 representative enterprises in the copper industry, with a cumulative production of 1 million mt, sharing cutting-edge technologies and valuable experiences to promote the upgrading of the copper industry chain and drive high-quality industry development. The CCIE 2025 SMM (20th) Copper Industry Conference and Copper Industry Expo will help you grasp industry trends, expand your network, and seek business opportunities! SMM cordially invites you to gather in Nanchang, Jiangxi from April 22 to 25, to unite in the new era and jointly plan for new development!