Chile: Copper prices continue on a downward trend in June
July 1, 2016
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 during a brief period in February and March, copper prices have been on a downward trajectory since April. In June, copper prices averaged USD 2.11 per pound (equivalent to USD 4,642 per ton). This represented a 1.5% monthly decrease from May’s average copper price of USD 2.14 per pound. In annual terms, copper prices fell a steep 20.4% in June (May: -25.1% year-on-year), marking the 23rd consecutive fall. June’s drop mainly reflects persistent weakness in global demand, particularly from China.