Chile’s Codelco forecasts lower copper prices in 2022

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Chilean copper producer Codelco, the world’s largest, indicated it could see copper prices coming down in 2022.

According to a Reuters report, Codelco CEO Octavio Araneda said prices in 2022 will likely come in slightly lower than in 2021.

As we’ve noted recently, MetalMiner is hosting its final webinar of the year on Wednesday, Dec. 8, during which the MetalMiner team will overview price predictions for metals in 2022. Those interested in participating in the session can sign up on the MetalMiner Events page.

Copper prices stabilize

copper mine

Gary Whitton/Adobe Stock

Like aluminum, LME copper prices on the LME surged to $10,270 per metric ton in late October, according to MetalMiner Insights data.

The price fell back to close the month, however, closing October at $9,490 per metric ton.

Since then, the copper price has trended sideways.

From a technical perspective, LME copper trading volumes reached a November high of 145,635 as of Nov. 2. Volumes fell as low as 69,991 on Nov. 25, during which prices surged briefly and approached MetalMiner resistance levels.

However, the stronger the trading volume, the greater the significance of a corresponding price movement (and vice versa). As such, after jumping to just under $9,900 per metric ton Nov. 25, the price retreated.

LME three-month copper closed the month at $9,510 per metric ton.

Political crossroads

Chile and Peru, the world’s top two copper producers, have had elections this year that could prove transformative for the copper sector in both nations.

After a general election in April and runoff in June, Peru elected leftist Pedro Castillo. Meanwhile, Chile election runoff between conservative José Antonio Kast and leftist Gabriel Boric.

A victory by Boric, a former protest leader, could lead to increased taxes on miners in the country.

According to media reports this week, Boric led in the latest polls released Sunday.

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