Source: Commodity Online

According to a survey by the Chilean Copper Commission, copper prices should average at USD 3.62 a pound. Copper is a major export from Mongolia and its prices largely dictates the health of the Mongolian economy.

Cochilco surveyed 19 local mining analysts to find an insight into the possible trend of the metal which is a key indicator of health. Chile produces almost 30 percent of global copper production. These results are lower than previous forecasts because of possible economic slowdown.

“The lower prices outlooks shows analysts have incorporated the possibility of a recession in the Euro zone and the slower Chinese growth as a result of a reduced demand in the U.S. and Europe,” Andres Mclean, Cochilco executive said in a statement.

Earlier, Codelco, Chile's top copper producer, offered a 4.3 percent cut in physical copper premiums to its Chinese buyers for 2012, possibly indicating a slightly weakening demand in China.