Chile Commodities January 2020

Chile

Chile: Copper prices keep rising in January

February 12, 2021

Copper prices continued to increase in January, supported by fiscal stimulus measures in the U.S. and upbeat demand prospects. On average, prices for the red metal came in at USD 7,962 per ton (equivalent to USD 3.61 per pound), up from December’s USD 7,772 per ton (USD 3.53 per pound). Moreover, prices were 43.4% higher than in the same month last year.

January’s gains were largely driven by the projected impact of President Biden’s fiscal stimulus plan on future demand for copper. Moreover, Chinese industrial production was strong in December and the recovery in global copper usage remained relatively robust in January, which also supported prices for the red metal.

Going forward, copper prices should decline this year as supply conditions improve, especially in Latin America, although the expected decrease should be partly mitigated by increased demand for electric vehicles and green-energy projects.

Our panel projects copper prices to average USD 7,213 per metric ton in Q4 2021 and USD 6,893 per metric ton in Q4 2022.


Author: Massimo Bassetti, Senior Economist

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Chile Commodities January 2021

Note: Year-on-year and month-on-month changes of industrial production index in %.
Source: French Statistics Institute (INSEE).


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