Codelco lowers 2022 copper production outlook @PauloMacro posted this article on Twitter
https://www.mining.com/web/codelco-lowers-2022-copper-production-outlook/ And commented:
While everyone was busy parsing JPow and selling the cr@p out of everything, many may have missed how the world’s largest copper miner Codelco cut 22E production guidance by another 100kt, to 1.5mt (was 1.7mt in June).
That makes over 650kt of announced guidance production cuts for Cu miners so far this year from visible, trackable production. Cu production fell -3% in 1H YoY but miners are still guiding +1% for 2H YoY… ie +8% HoH… That’s just not fuking happening In comments the recent price drop was compared to pushing a beach ball underwater, the more it goes down and stays down the higher it'll get shot up.
Capital is avoiding Chile and Peru now due to potentially hostile govts., problems with social license, low Cu price, water, who wants to invest in desalinization with this uncertainty. All these problems and now sustaining capital will become more scarce and development of new projects reduced. This is %40 of world supply that is troubled - to our benefit.