The July copper futures continued to drift low as Chile, the top producer, painted a mixed picture trading at $2.27 per pound, holding onto the important $5,000 a tonne level. The price of copper is up solid 17.2% from a seven-year low hit mid-January. Cochilco, the Chilean Copper Commission, reduced its prediction for global refined copper demand this year from 2.3% to 1.8% as demand from China, which represents nearly half of the global total demand, continues to be moderate. As for copper supply, Cochilco expects global production to rise 2.1% this year and 1.9% in 2017, compared to its previous forecasts of 2.6% and 2.5%, respectively. The increase in output will be mainly due to a surge in production from Peru, Mexico and Indonesia, which will offset declines in China and a static output in Chile, which produces nearly 30% of the total global copper. This is expected to further increase by 2.9% in 2017.
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