Antofagasta CEO worries about recession

Antofagasta CEO expressed concern on Wednesday that a more recessionary environment could depress copper prices, and said he expects a global downturn to be temporary.

Chile is the world's largest copper producer, and the government cut its average price estimate to $3.62 per pound on Wednesday, from a previous estimate of $3.92 last July.

Arriagada told reporters during an event in Santiago that the trend followed by copper prices in a more recessionary context. He predicted that a recession would be temporary and the economy would return to growth.

He said that the economic context will lead to a global recession and that copper prices will be at the low end of the cycle in the short term.

Copper prices had recovered from two month lows but fell again due to expectations of weak demand and rising inventories by the end of September.