SMM7 19: on Thursday, the Chilean Copper Council (COCHILCO) cut its forecast for 2019 to $2.89 a pound from $3.05. It also cut its forecast for 2020 to $2.90 from $3.08 a pound.
And Cantallopts, COCHILCO's director of public research and policy, expects global copper production to be about 20.85 million tons this year, down 0.4% from 2018, mainly due to falling production in China, Indonesia and Chile.
The world's largest copper producer has experienced many twists and turns this year.
The move follows a two-week strike at the Chuquicamata copper mine owned by Chilean state copper (Codelco), which has had a significant impact on copper supplies in Chile.
During the strike, the copper mine's capacity was maintained at only 60 per cent. Industry consultants estimate that several days of strikes at the Chuquicamata copper mine have reduced production to about 10, 000 tons, compared with 321000 tons at Chuquicamata last year. The strike also cost Codelco more than $50 million.
However, Chile's annual copper production has not been greatly affected and is still expected to reach a level of 5.8 million tons by the end of this year, roughly the same as last year.
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