Chilean company Cochilco raises its copper price forecasts for 2024 and 2025

Bloomberg— Chili peppera leading copper supplier, He raised his expectations for copper prices in light of the expected easing of monetary policy in the United States And the Increasing demand to abandon fossil fuels.

chilean copper company, Cochilco said Monday that it expects prices to average $3.85 per pound this year, up from the previous estimate of $3.75. Next year, the government agency expects the average price to be $3.90. The metal is currently trading at around $3.78 per pound.

Copper's prospects improve Fed easing, energy transition support rates

The cable metal's prospects are improving as US monetary authorities move to normalize monetary policy. Accelerating electric vehicle sales is also driving demand for cable metal. These factors offset increasing global geopolitical risks.

Global copper production is expected to rise by 5.8% this year, outpacing demand growth of 3.2%.Which will lead to a small surplus. A return to surplus is certainly vulnerable to supply-side disappointments.

According to Kochelko, Chilean production will increase by 5.7% this year and 6.4% next year, which will keep the country as a major producer. The Democratic Republic of the Congo will occupy second place this year, with Peru falling to third place, according to agency estimates.