Chile Commodities July 2016


Copper picks up slightly in July

Concerns over a slowdown in China—the world’s top consumer of copper—a strong U.S. dollar and oversupply have triggered a sell-off in copper and other major commodities. Prices for copper and several other commodities decreased last year and remained low in recent months. In fact, copper prices dropped to an over-six-year low in January. Thereafter, copper prices have been somewhat volatile, hovering around low levels.

After rising slightly in February and March and resuming a downward trend from April to June, copper prices registered a modest increase in July. Copper prices averaged USD 2.21 per pound (equivalent to USD 4,865 per ton) in July. This represented a 4.8% monthly increase from June’s average copper price of USD 2.11 per pound. In annual terms, copper prices fell 10.8% in July (June: -20.4% year-on-year), marking the 24th consecutive fall. July’s modest increase partly reflects prospects that more expected global economic stimulus, particularly in the UK and Japan, will boost growth and demand for copper. Moreover, better-than-expected data on the U.S. labor market in July also supported prospects for copper demand.

Panelists participating in the LatinFocus Consensus Forecast expect copper prices to average USD 2.17 per pound in 2016 and USD 2.26 per pound in 2017.

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