Chile: Copper prices fall further in January
February 1, 2014
In January, copper prices rose 1.1% over the previous month to an average of USD 3.31 per pound (equivalent to USD 7,297 per tonne). January's increase followed the 2.1% rise recorded in December.
A year-on-year comparison, however, does not corroborate the improvement suggested by the monthly data. In annual terms, average copper prices dropped 9.3% in December, which was nearly in line with the 9.2% drop recorded in December. The Chilean Copper Commission (Cochilco) expects that Chile will produce 6 million tonnes of copper in 2014 and 6.2 million tonnes in 2015.
Cochilco projects that copper prices will average USD 3.15 per pound in 2014 before moderating to USD 3.00 per pound in 2015. Consensus Forecast panelists expect copper prices to average USD 3.19 per pound in 2014 before moderating to USD 3.16 per pound in 2015.
Author: Dirina Mançellari, Senior Economist