Yesterday the main export of the country closed at US $ 2.81 a pound and so far this year it accumulates gains of 0.62%, giving respite to fiscal incomes.
Even the most optimistic projections did not contain the idea of a recovery in the price of copper as fast as the one being seen. The price of the country’s main export closed yesterday at US $ 2.81 per pound, after rising 1.77% daily, and 34% with respect to its lower value in March. In this way, the mineral reaches an average price of US $ 2.5 so far this year, with which the metal registers an increase of 0.62%. Experts agree that one of the main reasons that are driving copper to these levels is due to the consolidation of the recovery of the economy of China, the main consumer of the input.
“The rise in the price of copper in recent times is mainly due to higher demand given the rapid pace of economic recovery in China. The indicators of industrial production and activity of the manufacturing sector in May suggest a recovery in the form of a “V”, that is, a rapid one, “explains Marco Riveros, executive vice president of Cochilco. Data confirming this recovery includes power generation in China, which grew 9.1% during June versus the same month of 2019, steel production that rose 4%, and the giant’s copper wire and cable manufacturers Asia that were for the third consecutive month above the installed capacity.
“No one doubts a recovery in China, despite heavy rains in the country and a controlled outbreak in Beijing. Now we will have to start looking at what happens outside of China, and there are also positive signs there. Europe and the United States have risen in the PMI index, an indicator that anticipates the results of economic growth. These numbers are close to levels that suppose expansion ‘, adds Plusmining executive director Juan Carlos Guajardo. Regarding the future of the mineral, it would still have room to grow, which is why Cochilco maintains that the market situation points to an average price higher than the US $ 2.4 they had planned for this year. This value would be updated by the state entity, and would also be pushed by the pressures of possible supply interruptions of the Chilean mines due to the rise in contagions. ‘The fundamentals of copper have not changed, they are good, so the price could continue to rise, this has not basically gone through the trade war and the current health emergency. Except for that, the demand already looked healthy for the next few years, ‘says the partner of the consulting firm Vantaz, Juan Cariamo.
Gold on the rise
But not only copper has a good streak. Gold is achieving record numbers. Yesterday it was quoted at US $ 1,809 an ounce, becoming the highest value seen since September 2011. So far this year, the price has risen by 19%, due to its quality as an investor refuge.
Source: El Mercurio