Copper to average $2.20 in 2009 - Antofagasta

Chinese demand and the likelihood of recovery in the US and Europe expected to support the metal

Posted: Monday , 07 Sep 2009

SANTIAGO, (Reuters) -

Copper prices could average $2.20 a pound this year on strong demand from China and likely recoveries in the United States and Europe, the CEO of Chilean minier Antofagasta was quoted as saying by a local newspaper on Saturday.

Marcelo Awad, the chief executive officer at Antofagasta (ANTO.L: Quote), told Santiago-based El Mercurio that prices should remain at between $2.60 and $2.90/lb for the rest of the year.

"It could reach $2.20 on average" in 2009, Awad said. "We have seen that the United States and Europe have consumed their (copper) inventories; therefore, demand from their side should start to pick up pretty soon."

So far this year the price of the red metal has averaged around $2.00/lb.

He said that the finances of mining companies are improving as the crisis eases, but many projects remain on ice because of lingering difficulties securing financing from banks.

(Writing by by Alonso Soto; Editing by Eric Walsh)

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