Chile: Copper prices fall at sharpest rate in nearly two years
April 2, 2014
In March, copper prices fell 7.0% over the previous month to an average of USD 3.02 per pound (equivalent to USD 6,650 per tonne). March's decrease followed the 2.0% drop observed in February and confirms the downward trend of copper prices due to slowing demand from China-Chile's main importer of copper. A year-on-year comparison corroborates the deterioration suggested by the monthly data. In annual terms, average copper prices fell 13.0% in March, which followed the 11.3% decrease recorded in February. The reading marked the sharpest fall since August 2012. The Central Bank expects copper prices of USD 3.0 per pound in 2014 and USD 2.85 per pound in 2015. FocusEconomics Consensus Forecast panelists expect copper prices to average USD 3.19 per pound in 2014 before moderating to USD 3.16 per pound in 2015.
Author: Dirina Mançellari, Senior Economist