SANTIAGO: Chile's Cochilco copper commission said on Wednesday that it was significantly raising its projection for the price of copper this year to $4.30 per pound.

In January, Cochilco had forecast a price of $3.30 for 2021, but said it was updating its projection because of expectations of a short-term deficit through 2022 of refined copper and a drop in inventories in warehouses tracked by the London Metal Exchange.

Cochilco said that increased speculation in the market was playing a role in bolstering copper, adding: "This could push the price to new highs in the short term."

The commission also predicted that copper production out of Chile would hit close to 5.8 million tonnes this year, a year-on-year increase of 1.8%, but below its previous forecast of just under 6 million tonnes.

Chile is the world's largest copper producer.