Chile's copper production falls m-o-m in Aug'23
Chile’s copper production faced a decline of over 3% in Aug 2023, reaching 0.42 million tonnes (mnt) compared to 0.43 mnt in July 2023. This highlights the ongo...
On a y-o-y basis, production recorded a minor fall of 2% from 0.43 mnt in Aug 2022. The situation has been compounded by project delays, water restrictions, and worries about declining ore quality.
During the January-Aug 2023 period, copper production in Chile experienced a 4.2% decline, totalling 3.38 mnt compared to 3.53 mnt in the corresponding period of the previous year (CPLY). Operational issues and reduced water supply during this period contributed to the decrease.
Based on initial findings from the International Copper Study Group (ICSG), the global refined copper balance for the period of January to August 2023 shows an estimated surplus of approximately 99,000 t. This surplus arose from a roughly 5% increase in refined copper production, outpacing the 2.5% growth in refined copper usage.
As per the report, global mine production during the initial eight months of 2023 saw some improvement due to new operations and expansions. However, worldwide growth was hampered by operational challenges in Chile, China, Indonesia, Panama, and the United States, primarily during the first half of the year.
World copper mine production is expected to rise by 1.9% in 2023, down from earlier forecasts of 3%, due to various factors like geotechnical issues, equipment failures, and lower grades. Nevertheless, it will receive a boost from new and expanded mines, particularly in the D.R. Congo, Peru, and Chile, along with recovery from Covid-19-related production restrictions in 2022. A 3.7% growth is predicted for 2024.
In 2024, world mine production is set to increase by 3.7%, driven by both new and expanded mines. Production rates are expected to rebound in countries that faced operational challenges in 2023, including Chile, China, Indonesia, Panama, and the US.
According to data from Chile's National Institute of Statistics (INE), the industrial production index (IPI) in the country saw a y-o-y increase of 0.3% in August 2023. This growth was primarily attributed to expansions in Chile's manufacturing and mining sectors, while the electricity, gas, and water sector experienced a contraction.
At the same time, in August 2023, Chile's manufacturing production index (IP Man) saw a 0.5% y-o-y increase, driven mainly by the upsurge in machinery and equipment manufacturing.
Furthermore, the production index for electricity, gas, and water (IPEGA) in Chile declined by 0.6% in August 2023 compared to the same month in the previous year. This drop was primarily a result of reduced gas production.
