SHANGHAI, Aug 26 (SMM) - On Thursday, the Ministry of Economy and Finance of Peru predicted that copper prices might drop from $3.90/lb on average this year to $3.40/lb in 2023. Peru is the second largest copper producer in the world.

The mining industry is the major source of tax revenue in Peru, and the largest part of which comes from copper mining.

Kurt Burneo, the minister of Economy, said that Anglo American's Quellaveco mine which is expected to be put into production by the end of 2022 will offset the pessimistic price outlook.

However, Chile, the largest copper producer in the world, believes that the prospect of copper prices is not so pessimistic. At the end of July, Chile predicted that copper prices would hit $3.93/lb in 2023.

The copper prices have dropped by nearly 30% from the high point in March, but the prices are still at a relatively high level.