Morning Bites

🇨🇱Chile’s copper output dropped 13% YoY in May, after the 14% YoY decline in April, remaining near 10-year lows, per INE data. The production decline (also -9% YoY on 5mo26 basis) was mainly attributable to the high base effect, as well as lower ore grades at major mines

Considering the negative dynamics in local production (Chile represents ~24% of global mined Cu supply), Cochilco has again revised down its Cu production forecast for 2026, to 5.3mnt (-2% YoY), from the 5.6mnt it had estimated earlier (+4% YoY). The 5.5mnt supply outlook for 2027 is also 8% lower than the previous estimate

We maintain our bullish view on copper, amid both short- and long-term supply issues, growing global demand for renewables and surging investments in China’s grid infrastructure (~8% of global Cu demand, on our numbers)

#copper