Chile: Copper prices drop in August
October 1, 2012
In August, copper prices fell 0.9% over the previous month to an average of USD 3.41 per pound (equivalent to USD 7,516 per tonne), which contrasted the 2.2% gain seen in July. The monthly drop reflected signs of flagging growth in Europe, the United States and China. In annual terms, copper prices fell 16.5% in August, which nonetheless marked an improvement over the 21.4% drop recorded in July. As a result, the downwards trend in place since October 2011 continues, as dim global growth prospects dampen demand for copper. The Chilean Copper Commission (Cochilco) expects copper prices to average USD 3.52 per pound this year, amid expectations of a recession in the Eurozone, a soft landing of the Chinese economy and a fragile economic recovery in the U.S. economy.