Copper demand will recover only at the end of 2016

Santiago: The Minister of Mines of Chile, the largest copper producer, said that the price of copper could only recover from the recent downturn at the end of 2016. Speaking to reporters in Santiago, the minister noted that global markets should return to deficits by the end of next year.

The minister said that so far there have been no changes in the physical conditions in the copper market. There is now a sharp drop in commodity prices, which hit six-year lows. The minister also added that the sharp drop in copper prices has put a heavy financial burden on medium-sized mines that operate at high cost levels. He urged mine owners to put in place strict cost control mechanisms in mines that would help them survive in difficult times. And prices will sooner or later push off from the current lows, the minister added.

Meanwhile, Chile's copper exports fell sharply during July this year. Central customs data show that copper exports from the country fell by almost 24 percent year-on-year during the month. The value of exports fell from $ 3.171 billion in July last year to $ 2.398 billion in July 2015.

Aggregate copper exports to the country during the first seven months of the year decreased significantly compared to the previous year. Copper exports have declined 13 percent since the beginning of the year to $ 19.352 billion in value terms, compared with $ 22.244 billion in the same period last year. Cathode exports fell 16 percent year on year to $ 8.796 billion, while concentrate exports fell 6 percent to $ 8.898 billion.

Chile's annual copper production is estimated at 5.8 million tonnes throughout 2015.