Chile: Copper price continues its ascent in February
March 1, 2017
Copper prices rose slightly in February, building on the modest price increase seen in the previous month. Copper prices averaged USD 2.69 per pound (equivalent to USD 5,941 per ton) in February, representing a 3.4% monthly increase from January’s average price of USD 2.61 per pound. In annual terms, copper prices increased 29.2% in February, up from January’s 28.1% rise.
The increase in prices last month was largely supply-driven. Strike action due to a dispute over pay and conditions at Chile’s Escondida copper mine, the world’s largest, was at the heart of supply troubles in February. This was coupled with continuing disruption at the Grasberg Mine in Indonesia after the local government’s mining regulation shake-up halted copper exports.
Author: Oliver Reynolds, Economist