By Paul Ploumis 26 Aug 2015 Last updated at 04:35:32 GMT
The copper prices are likely to touch $2.8-$3.0 per lb towards the end of 2016. The commodity prices are likely to witness meaningful recovery only towards end of next year.
SANTIAGO (Scrap Monster): According to Ignacio Moreno, Chile’s Deputy Mining Minister, the prices of copper are likely to stage a recovery from its recent slide only by late-2016. Addressing reporters in Santiago, the minister noted that global markets are expected to return to deficit by end of next year. The copper prices are likely to range between $2.80 per lb and $3.00 per lb by end-2016.
The Minister noted that there has been no change in physical market conditions for copper until now. The exchange stock currently stands at around 500,000 mt, amidst sharp fall in the commodity prices to six-year lows. The minister also added that the huge drop in copper prices have caused severe financial burden to medium-sized mines that operate at high cost levels. He called upon mine owners to implement strict cost control mechanisms at mines which would help them to survive during difficult times. Prices will hopefully recover from the current lows, Moreno added.
Meantime, Chile’s copper exports have dropped sharply during the month of July this year. The central bank data suggests that the country’s copper exports during the month plunged by nearly 24% year-on-year. The value of exports dropped from $3.171 billion during July last year to $2.398 billion during July ’15.
The country’s cumulative copper exports during the initial seven-month period of the year too dropped significantly over the previous year. The YTD exports posted year-on-year decline by 13% from $22.244 billion to $19.352 billion. Exports of cathode dropped by 16% year-on-year to $8.796 billion, whereas those of concentrate declined by 6% to $8.898 billion.
Chile’s yearly copper output is estimated to total 5.8 million mt during the entire year 2015.