FX.co ★ Copper Slips on Strong Supply Outlook

Copper futures experienced nearly a 1% decline, settling at approximately $4.6 per pound on Wednesday, building on the previous session's losses due to a more favorable supply outlook weighing down the market. Chile, the world's leading copper producer, anticipates an increase in national output both this year and the next, targeting a record production of 6 million tons by 2027. This forecast is made in light of persistent challenges at Codelco's main mine and disturbances at Teck Resources' facilities. Nonetheless, Chilean producers have demonstrated strong performance, with the state-owned company Codelco reporting an output of 118,500 metric tons in July, marking a 6.4% increase compared to the previous year. In addition, BHP's Escondida mine reported an output of 114,800 metric tons, up by 7.8%. Conversely, China announced a 5% reduction in copper production in early September, removing approximately 500,000 tons of refined copper from the global market, which somewhat offsets the gains made by Chile.