Copper Prices Plummet as Codelco's Output Boost Eases Supply Worries

Copper Prices Extend Decline as Codelco Eases Supply Concerns Copper prices continued their downward trend, losing as much as 1.8% on the day, as Chilean mining giant Codelco's announcement of higher output this year and next helped to ease concerns about global supply. The news came as a relief to traders who had been bracing for potential shortages, which had driven prices to an all-time high last week. According to market data, copper prices hovered near their highest level in almost a year, with the benchmark London Metal Exchange (LME) price of copper at $9,450 per tonne, down from a record high of $9,550 per tonne reached just last week. Zinc prices, on the other hand, remained relatively stable, hovering near their highest level in almost a year, with the LME price of zinc at $3,350 per tonne. The decline in copper prices was also attributed to the easing of supply concerns, as Codelco's announcement suggested that the company's output would be higher than initially expected. Codelco, the world's largest copper producer, had been facing disruptions at one of its mines, which had crimped flows of copper and contributed to the recent price surge. The impact of Codelco's announcement was felt across the base metals market, with all main metals dropping in price. Zinc, which had been a beneficiary of the supply concerns, saw its price decline by 0.5% on the day. The decline in zinc prices was attributed to the shrinking of stockpiles, which had been driving prices higher. The base metals market has been volatile in recent weeks, with prices driven by a combination of supply and demand factors. The recent price surge in copper and zinc was attributed to concerns about global supply, which had been exacerbated by disruptions at major mines. However, Codelco's announcement has helped to ease these concerns, and traders are now looking to fresh uncertainty prospects for another US interest-rate cut next month. Codelco's announcement is significant, as it suggests that the company's output will be higher than initially expected. This is a positive development for the company, which has been facing challenges in recent years. The company's output is expected to increase by 10% this year, and by a further 5% next year, according to Codelco's latest projections. The base metals market is expected to remain volatile in the coming weeks, as traders continue to assess the impact of Codelco's announcement and the prospects for another US interest-rate cut. The market is also expected to be influenced by the ongoing trade tensions between the US and China, which have been a major driver of price volatility in recent months. In conclusion, Codelco's announcement has helped to ease concerns about global supply, and has contributed to a decline in copper prices. The base metals market is expected to remain volatile in the coming weeks, as traders continue to assess the impact of Codelco's announcement and the prospects for another US interest-rate cut.