Cochilco cuts Chilean copper forecast for 2026, 2027

By Reuters News

- Chile's copper commission Cochilco on Friday sharply lowered its forecast for Chilean copper production this year and forecast a milder-than-expected recovery for 2027.

The entity expects 2026 output to fall 8.4% versus a prior estimate of a 2.6% decline, before recovering next year with a 3% rise, slimmer than previously anticipated.

  • Cochilco estimates that Chilean copper production in 2026 will fall 8.4% to 4.94 million metric tons, versus an August estimate of 5.27 million tons

  • It noted that BHP's BHP.AX Escondida and Spence, along with state-run Codelco mines, account for more than 77% of Chile's net decline

  • Between January and September, Chile produced 3.63 million tons, down 8.5% from the same period in 2025

  • The country needs to produce close to 434,000 tons per month in the fourth quarter to reach the full-year estimate, Cochilco said

  • That amount would be 7.6% above average of what was produced this year through September

  • In 2027, Cochilco expects production to recover 3% to 5.08 million tons, versus the August estimate of 5.55 million tons

  • Lower ore grades, maintenance and disruptions have affected copper processing and recovery, Cochilco noted

  • Cochilco also raised its forecast for average copper prices to $6.18 per pound in 2026 and $5.95 per pound in 2027, citing constrained mine supply and a refined copper market with little room to absorb production disruptions

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