Copper reached its maximum value since March 2019

The red metal closed at $ 2.96 a pound.

The rise is mainly due to the recovery experienced by the Chinese economy.

The price of copper skyrocketed on the London Metal Exchange, grazing three dollars a pound on Monday with its highest value since March 2019.

The red metal closed the day at $ 2.96 a pound, up 3.5 percent, as reported by the Chilean Copper Commission (Cochilco).

This increase is linked to the recovery experienced by the Chinese economy, in addition to the expectation of low production in Chile due to the coronavirus and the possible strike that could take place at the Zaldívar Mine.

“The recovery in China has been showing very strong, therefore demand expectations have improved in the last few years, and on the supply side, fears of supply problems, essentially in Latin America, as a result of Covid-19, it has also been increasing, “said Juan Carlos Guajardo, Plusmining economist.

The Mining Minister, Baldo Prokurica, indicated that “it is excellent news, however, I want to be super conservative from the point of view that we are facing a conjunctural situation that is especially due to the announcements of a company and the eventual strike that could happen and that generates shortages. ”

“I would like us to talk about prices at this level, but permanently and not just for a peak period,” he added.

The same call was made by Álvaro Merino, study manager of the National Mining Society, who stated that “it is necessary to be cautious, a characteristic that will mark the price of copper in the second half of the year will be the high level of volatility, considering the high degree of uncertainty prevailing today.

” At the moment, today’s value was the highest in almost a year and a half, which also made the dollar drop, which was quoted at 786 pesos.

Source: Radio Cooperativa

Translated with Google Translator