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Copper: Supply risks grow despite strong US imports – Commerzbank

Commerzbank’s commodity team highlights disappointing Chilean Copper output, leaving third‑quarter production at a two‑decade low. Cochilco now forecasts an 8.4% slump in 2026 output and only a modest 3% recovery in 2027. Strong US import demand offers support, but Copper prices have still fallen below USD 14,000 per ton amid broader risk aversion and tech‑stock selling.

Chile cuts forecasts, prices under pressure

"Accordingly, the state copper commission Cochilco has revised its production forecast sharply downwards: instead of a marginal decline of 0.6%, it now expects production in the world’s largest copper-producing country to slump by 8.4% to 4.94 million tons this year."

"For next year, the commission at least forecasts a modest recovery of 3% to just under 5.1 million tons (previous forecast: 5.55 million tons)."

"Copper also receives support from persistently strong US import demand: according to information provider IHS Markit, 207,000 tons of copper were imported in October."

"However, the figures are not helping copper prices this morning: amid increased risk aversion towards technology stocks, copper is also being dragged lower, falling below USD 14,000 per ton to a seven-week low."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Know more.)

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The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

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