Copper prices drop at unobserved prices in three years | Trade | Economy

Trade tensions between the United States and China, added to the global strengthening of the dollar, play against the world price of copper main export product of Peru.

The price of metal The red closed the first half at $ 3 per pound, a decrease of 8.1% from its value at the beginning of the year. This represents an unprecedented rate of decline since the first half of 2015, when the value of copper decreased by 9.32%.

In addition, the month of June was particularly difficult for the metal. Not only is the trade uncertainty between the two largest economies in the world compounded, but the Federal Reserve has shown a more aggressive tone on the future of its monetary policy. In this context, copper reached its highest value of the year on June 7: US $ 3.33 per pound, but since then it has fallen by 9.67%.

DUAL WARNING
In the coming months two factors that threaten the price of copper and other industrial metals, predicts Morgan Stanley. Trade tensions add uncertainty over the slowdown in the Chinese economy, according to the financial institution.

"The escalating global trade tensions entails a risk of destruction of demand in commodity markets costs for end-users and limited access to materials," says the bank in a report quarterly. "China's optimism gives way to concerns over credit tightening and the slowdown in the manufacturing sector."

By the way, the rise in US interest rates. Hugo Perea chief economist for Peru from BBVA Research

The expert predicts that there is an artificial component in the price of copper, but as far as that credit in the world becomes more expensive, those who go into debt to bet on metals will see that the coin is more profitable.