Chile: Copper prices drop in May
June 1, 2012
In May, copper prices fell 4.1% over the previous month to an average of USD 3.59 per pound (equivalent to USD 7,920 per tonne), which followed the 2.3% drop in April, and marked the lowest level so far this year. The reading came in amid weak economic indicators in China and heightened tensions in the Eurozone, which signalled a downturn in global economic growth and triggered a widespread moderation across commodity prices In annual terms, copper prices fell 11.3% over the same month last year, which followed the 12.9% drop recorded in April. The annual decline marked the eight consecutive negative reading, as dim global growth prospects dampen demand for copper. The Chilean Copper Commission (Cochilco) expects copper prices to average USD 3.84 per pound this year, amid expectations of a mild recession in the Eurozone as well as a soft landing of the Chinese economy.