Chile: Copper prices gain further ground in July
August 3, 2017
Copper prices rose for the second consecutive month in July and are now up substantially since the start of the year. Copper prices averaged USD 2.71 per pound (equivalent to USD 5,985 per ton) in July, up 4.6% from June’s average price of USD 2.59 per pound. In annual terms, copper prices increased 23.0% in July.
Last month’s rise in prices was underpinned by encouraging signs from China, the world’s number one consumer of the red metal, after news surfaced that the government was considering a ban on imports of scrap. This could boost demand for other forms of copper, such as copper concentrate or refined metal. In addition, there were temporary supply disruptions in Chile and Canada due to poor weather delaying shipments, while strike action at Indonesia’s Grasberg mine rumbled on into a fourth month, further stoking supply concerns.
Author: Oliver Reynolds, Economist