Chile: Copper prices fall in June
Copper prices took a hit in June, coming in at USD 9631.5 per ton on average, down from May’s USD 10150.2 per ton. However, prices were 67.4% higher than in the same month last year and 21.0% higher year-to-date.
June’s losses were caused by China’s announcement that it will gradually sell some of its state reserves of copper in a bid to limit the recent surge in prices. In addition, the Fed’s hawkish turn at its June meeting supported the USD and weighed further on prices for the red metal.
Although copper prices are seen dipping by year-end, they should average much higher this year than last, thanks to sustained demand—especially from sectors such as electric vehicles and green-energy projects—and supply disruptions. Proposed mining royalties in Chile and Peru and concerns over strikes at major mines in Chile pose upside risks.