The copper commission has reaffirmed its copper price forecasts for 2016 given the lack of significant changes in the supply/demand balance. The commission also kept its price projection for next year at US$2.20/lb, according to its latest quarterly forecast report.

The decision was based on Cochilco’s perception that significant changes are unlikely in the financial and economic conditions of the main consumers of copper, and demand and supply are expected to remain stable.

However, the Cochilco’s forecast is that global copper demand will grow 1.8% in 2016, the agency is projecting a demand increase of 2.1% in 2017. In case of copper supply, the agency expects the global production rise a 2.1% this year and 1.9% in 2017.

Cochilco expects the copper market to show a surplus this year of 140,000t, and 92,000t surplus is expected for 2017.

Chile’s copper production is expected to be 5.77Mt this year, up 0.1% from 2015, while for next year the agency forecast output of 5.95Mt, up 3.1% from 2016.