Chile asserts its position as Global Copper Monitor -- Estimates global demand for copper to increase 5.2% in 2008

Chile forecasts copper 450.000 tons surplus in 2009

The Chilean Copper Commission (COCHILCO) predicted this week a 450,000 ton surplus in the global copper production for the year 2009. Global supplies are expected to increase by 7.9% between now and then due to increased production.

Growing demand from China, which should increase by 370,000 tons over the next year, as well as demand from European and other Asian countries, should raise global demand by 5.2%. “China has always been the main motor of global refined copper demand” said the COCHILCO quarterly report. Global mining production is expected to rise by 8.2% to 17.8 million tons in 2009. Meanwhile, 2008 production growth will only reach 3.8%. Chile’s copper production is expected to grow by 2.6% for 2008. Chilean copper mines Gaby, Spence, Escondida Oxidos and Collahuasi predict to raise their production to 5.6 million tons alone. COCHILCO said global copper production will record a slight deficit of 46,000 tons for 2008 because of high copper prices. Still, the expected 2009 surplus should make copper price drop. The Santiago Times