The most recent survey conducted by the Chilean Copper Commission (Cochilco) indicates that the country’s market experts have further cut the 2014 price forecasts for copper. The copper prices for 2014 is now predicted at $3.07 per lb.This are 7 cents lower when compared with the results of October 2013 survey.
The Cochilco survey comes immediately after the country’s Finance Minister Alberto Arenas declared that the government had cut its copper price forecast for the year to $3.05 per lb. Earlier in September 2013, the government had projected the copper output from the country at $3.25 per lb.
According to Cochilco, the market experts expressed deep concerns of a slower economic growth in China during the year. The industrial output, retail sales and investment in fixed assets by China are clear indications that the country’s economy still remains weak. Incidentally, China is the largest consumer of the red metal. The participants also feared that the global copper market may turn into surplus as new capacities start production towards the second half of the year.
The market participants projected the 2015 copper prices to be $3 per lb, indicating a further fall. The medium rage outlook also looks extremely subdued with price outlook until 2019 projected to remain at $3 per lb.
The Chilean Copper Commission (COCHILCO) is a specialized technical agency established in 1976, which advises the Chilean government on matters concerning the production of copper and copper byproducts and metals and industrial minerals.