Chile: Copper prices resume their fall in May
June 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.
After rising slightly during a brief period in February and March, copper prices resumed to a fall in April and May. In May, copper prices averaged USD 2.14 per pound (equivalent to USD 4,713 per ton). This represented a 3.3% monthly decrease from April’s average copper price of USD 2.21 per pound. In annual terms, copper prices fell a steep 25.1% in May (April: -19.3% year-on-year), marking the 22nd consecutive fall. May’s drop mainly reflects that weakness in global demand persists, particularly from China.