Chile raises copper price forecast as production slows and trade tensions ease

Chile, the world's largest copper producer, raised its price forecasts for the metal this year and next. The government's commission, Cochilco, attributed this to easing world trade tensions and supply disruptions, which signal a market shift to a state of deficit.

The commission projects an average copper price of $4.30 per pound ($9,480 per ton) for this year and next, compared to a previous forecast of $4.25 per pound ($9,370 per ton).

The Cochilco report states that the 90-day tariff truce between the US and China has slightly improved the outlook for global trade. In this regard, the commission forecasts a 2.3% increase in global demand for the red metal this year.

Meanwhile, Cochilco's current estimates indicate that global supply will grow by only 1.3% this year, which is lower than the previous forecast of 4.7%. The largest copper producers recorded a decline in output during the first quarter of 2025. Cochilco lowered its expectations for industrial metal production growth in Chile to 3% this year and next.