Copper prices will average $2.50/lb in 2016, down from $2.53/lb in 2015, the Chilean Copper Commission (Cochilco) said in its latest quarterly report, released Friday.
The forecast represents a 7.4% decrease from the $2.70/lb average predicted in Cochilco's previous report, released in July.
Cochilco executive vice president Sergio Hernandez said production cuts announced by mining companies in the last few weeks would lift copper prices off recent lows around $2.20/lb.
The government agency predicted that Chinese demand for copper will grow by just 2% this year and has also cut its growth forecasts for Japan, Russia and South Korea.
