Chile Commodities April 2016

Chile

Chile: Copper prices fall slightly in April

May 1, 2016

Concerns over a slowdown in China—the world’s top consumer of copper—a strong U.S. dollar and an 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.

Following February’s and March’s modest uptick, copper prices fell slightly in April. Copper prices averaged USD 2.21 per pound in April (equivalent to USD 4,873 per ton). This represented a 1.7% monthly decrease from March’s average copper price of USD 2.21 per pound. In annual terms, copper prices fell a steep 19.3% in April (March: -16.6% year-on-year), marking the 21st consecutive fall. While March’s monthly price increase was largely driven by speculation, April’s moderate drop reflected that the underlying dynamics of persisting oversupply and subdued demand remain in place.

Panelists participating in the LatinFocus Consensus Forecast expect copper prices to average USD 2.15 per pound in 2016 and USD 2.30 per pound in 2017.


Author: Teresa Kersting, Economist

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Chile Commodities April 2016

Note: Cash seller and settlement price.
Source: Thomson Reuters.


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