Chile: Copper prices keep rising in February
Copper prices continued to increase in February, supported by sustained global manufacturing activity and solid demand prospects. On average, prices for the red metal came in at USD 8,471 per ton (equivalent to USD 3.84 per pound), up from January’s USD 7,962 per ton (USD 3.61 per pound). Moreover, prices were 48.9% higher than in the same month last year.
February’s gains were fueled by the expected fiscal stimulus plan from the Biden administration in the U.S. Moreover, further upside pressure stemmed from accelerating demand for the red metal, as suggested by the global copper usage PMI and a pickup in the global manufacturing PMI. On top of that, concerns over production in some Latin American countries due to Covid-19 restrictions exerted further upward price pressures.
Looking ahead, copper prices are set to decrease notably this year on the back of improving supply conditions, especially in Latin America, although the projected drop should be partly cushioned by strengthening demand for electric vehicles and green-energy projects.