Chile: Copper prices drop to over-six-year low in November
December 1, 2015
Concerns over a slowdown in China—the world’s top consumer of copper—an appreciating U.S. dollar and an increased commodity supply triggered a sell-off in copper and other major commodities. Prices for copper and oil, and also for gold and other raw materials, have seen new lows recently. Following August’s slump, copper prices rose slightly in September and stabilized in October, partly because several major mining companies announced production cuts. Nevertheless, in November, copper prices continued to decline and fell to the lowest level since May 2009, averaging USD 2.18 per pound (equivalent to USD 5,599 per tonne). This represented an 8% monthly drop from October’s average copper price of USD 2.37 per pound and underlines that the underlying drivers of falling copper prices remain in place.
In annual terms, copper prices fell a steep 28.5% in November (October: -22.6% year-on-year), marking the 16th consecutive fall and the sharpest annual decline since July 2009. Since the beginning of this year, copper prices lost 25.5% of their value.