Skyline in Chile

Chile Commodities February 2022

Chile: Copper prices rise in February

Copper prices increased in February, coming in at USD 9,943 per ton on average, compared to January’s USD 9,780 per ton. Moreover, prices were 17.4% higher in February than in the same month of the prior year.

The higher February reading was linked largely to a fairly tight supply situation. The latest available data showed that Chile’s copper output tumbled 7.5% in year-on-year terms at the outset of 2022, while production at Peru’s Las Bambas mine has been hit by social unrest. Moreover, sanctions on Russia likely raised concerns about the impact on the country’s copper output. On the other hand, the Russia-Ukraine conflict has darkened the global demand outlook for the metal somewhat.

Copper prices are seen ebbing slightly going forward as global growth slows and supply concerns gradually ease. Sustained demand from the electric vehicles and renewable energy sectors should provide some support though. The possible widening of the war in Ukraine is a risk to both demand and supply, while potentially tougher environmental restrictions on the mining sector under Gabriel Boric pose an upside risk due to the likely impact on supply. Boric has already declared his opposition to the USD 2.5 billion Dominga mining project, while a senate commission in January approved an adjusted mining royalty bill which would raise levies on firms. Moreover, the new constitution could also open the door to the nationalization of mining assets, according to ideas currently under discussion in the constituent assembly.

Free sample report

Access essential information in the shortest time possible. FocusEconomics provide hundreds of consensus forecast reports from the most reputable economic research authorities in the world.
Close Left Media Arrows Left Media Circles Right Media Arrows Right Media Circles Arrow Quote Wave Address Email Telephone Man in front of screen with line chart Document with bar chart and magnifying glass Application window with bar chart Target with arrow Line Chart Stopwatch Globe with arrows Document with bar chart in front of screen Bar chart with magnifying glass and dollar sign Lightbulb Document with bookmark Laptop with download icon Calendar Icon Nav Menu Arrow Arrow Right Long Icon Arrow Right Icon Chevron Right Icon Chevron Left Icon Briefcase Icon Linkedin In Icon Full Linkedin Icon Filter Facebook Linkedin Twitter Pinterest X Download Fullscreen