Chile's Cochilco keeps 2019 copper forecast at $3.05/lb amid trade war, Brexit
(Adds context, quotes from Cochilco, mining minister)
By Fabian Cambero
Jan 17 (Reuters) - Chile's Cochilco state copper commission
on Thursday maintained its average price prediction of $3.05 per
pound for 2019, rising to $3.08 for 2020, amid the continuing
U.S.-China trade war and further potential volatility because of
Cochilco said it saw production at 5.941 million tonnes for
2019, up 1.6 percent from 5.845 million in 2018, and a 227,000
tonne deficit in the global market for 2019, dropping to 185,000
in 2020. Chile is the world's top producer of the red metal.
The commission said it expected demand from China to nudge
up 2.5 percent in 2019, along with a 10 percent uptick in demand
from India given an uptick in its economic growth and local
"The reduction in global expectations for the price in 2019,
coupled with the trade war, will keep investors away,
maintaining a downwards trend in the price for the short term,"
Chile's mining minister Baldo Prokurica said.
He added that while he did not expect Britain's negotiations
for exiting the European Union to be a decisive factor, it could
create further volatility in the market.
Victor Garay, Cochilco's markets coordinator, said the
effect of the trade war could however start to diminish in the
"We are hoping that although the whole issue won't be
resolved, the signs will be more positive," he said.
(Reporting by Fabian Cambero; writing by Aislinn Laing
Editing by Chizu Nomiyama and Marguerita Choy)
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