Chile: Copper prices soar to new heights in October
November 1, 2017
Copper prices rose for the fifth consecutive month in October, reaching their highest level in over three years. Copper prices averaged USD 3.09 per pound (equivalent to USD 6,808 per ton) in October, up 3.5% from September’s average price of USD 2.98 per pound. In annual terms, copper prices increased 43.9% in October.
Copper prices continued to rise last month, despite worries that the rally was already overstretched. Demand for the red metal remained fairly buoyant, particularly in China. This was coupled with tight supply, which has fueled a market deficit so far this year. In addition, investors are bullish on the future for copper prices, and are betting on increasing demand due to infrastructure development in emerging markets and the spread of electric cars.
Author: Oliver Reynolds, Economist