Chile Cochilco may adjust 2008 copper price outlook

SANTIAGO, March 6 (Reuters) - Chile's state copper commission Cochilco said Thursday it would monitor copper prices to see if it would need to modify its average price for 2008 of $3.10 per lb after the red metal hit a record high in London.

Copper, Chile's leading export, surged 5.52 percent to an equivalent record $4.028 a lb on the London Metals Exchange, the highest nominal value it has ever attained.

Chile produces about a third of the world's copper, which accounts for more than half its exports. Sky-high prices for the metal have pushed its trade surplus to record levels and helped boost the peso to a 10-year high against the flagging dollar.

"Cochilco will hold to its projected price of about $3.10 per lb for 2008, but will remain attentive to changes," the commission said in a statement. "Given factors such as low inventories and a weak dollar, the price will likely remain volatile and may hit new highs."

High prices for copper and other metal commodities have been supported by booming Asian demand and limited supplies, as well as a weak dollar, Cochilco said.

Chile's large copper miners include state-owned Codelco, the world's biggest copper producer, BHP Billiton (BHP.AX: Quote, Profile, Research), Antofagasta Minerals (ANTO.L: Quote, Profile, Research), and Freeport-McMoRan Copper & Gold (FCX.N: Quote, Profile, Research). (Reporting by Manuel Farias, Writing by Lisa Yulkowski; Editing by John Picinich)