Chile Sees Copper Averaging $2/lb in 2009

SANTIAGO, July 14 -- World copper prices could average about $2 per pound in 2009, Chile's Mining Minister Santiago Gonzalez said on Monday, signaling greater market stability after the red metal plunged from record highs.

    "The price this year depending on international conditions in China and India should stay at around $2," Gonzalez said.

    Gonzalez' $2 prediction is still a far cry from records of $4 a lb nearly a year ago.

    The world's top copper producer could see its output rise by as much as 4 percent this year from 2008, he added.

    Chile produced 5.33 million tonnes of copper in 2008, 4.1 percent less than in 2007, the country's state copper commission Cochilco said in February.

    Cochilco said in its last outlook Chile could produce about 5.4 million tonnes this year.

    Gonzalez said there have been no changes in copper demand from top buyers like China and India, and he sees world copper inventories stabilizing.

    "The sale of copper worldwide has been maintained in great part thanks to big investments carried out mainly in Asia," Gonzalez added.

    (Source: Reuters)