Chile's copper production increased by 1.1 percent in October compared to the same period last year, an improvement attributed to the cutting of supplies by Chinese producers to stabilize prices.

Business Recorder noted that the country produced a total of 500,720 tonnes of copper for the month of October. It added that this was "due to increased processing rates and output from a new mine."

The same report mentioned that the country has struggled with its production of copper although it is known to be the third largest producer of the said mineral.

To further help boost production of copper, it was noted that mines like Codelco's Ministro Hales, Polish miner KHGM's Sierra Gorda, Japanese-owned Caserones and Antofagasta's Antucoya are doing their part to increase the output.

"Compared with September, copper output increased 6.7 percent. In January to October, copper production totaled 4.81 million tons, up 0.6 percent from 2014," added Business Recorder.

In addition, Capital explained that Chinese copper producers are believed to announce supply cuts which could "offset pressure from a stronger dollar."

"The market needs more production cuts at this point because there really doesn't appear to be anything stellar on the demand side of the equation," said commodities investment company Logic Advisors LLC co-founder, Bill O'Neill in the Capital report.

Last week, the price of copper has hit an all-time low, almost down to 60 percent. With the chemical element's importance to the country's economy, it is said that it is highly dependent on whatever happens to copper.

Seeking Alpha said copper has actually been on the decline for the past four years since it recorded highs in 2011.

"This decline has even accelerated the last six months with prices down by a third," added the same report.

As an effect, Bloomberg said Chile's peso slumped and instigated talks that the central bank could intervene in the market.

The same report said the central bank "reserves the right to act in the foreign-exchange market" when there is concern about the effect of the currency to a possible local inflation.

It noted that the currency slid to 0.6 percent to 715.11 per dollar when trading closed on Monday. This is reportedly the weakest of the Chilean peso since 2003.

"We continue to see copper hitting the peso really hard. At this rate it could easily weaken past 720 per dollar, and we have to see what the central bank says then. It's certainly not comfortable with the effect on inflation," noted EuroAmerica head of currency trading, Ronald Volpi.