Chile, the largest copper producer in the world, reported another monthly decline in copper output in May, Bloomberg reported on Friday.
The South-American country accounts for about a quarter of the world's copper production and the new report raises concerns about the supply.
Copper output in Chile dropped 14% year-on-year in May to 413,083 tons, according to the country’s INE statistics agency. Project delays at Codelco, the largest producer, have been a major factor in the plunge to the lowest output figures in a quarter century. Recent rains that disrupted work at some mines in central Chile dimmed June’s production outlook.
There is a glimmer of hope however as manufacturing production in the country decreased less than expected by 1.2% in the period, the INE added. Economists polled by Reuters had forecast a 4.5% drop.
Project wobbles, mine-specific setbacks and plant maintenance have hindered Chilean output of late, providing an offset to China’s slower-than-expected economic recovery in a market that appears to lack clear direction.
Theodor Lisovoy for Rough&Polished
