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Black days for the main export of Chile. Copper from goes through its worst series since August 2016 until . I recorded this Thursday a drop of 0.92%, the consecutive ninth . And the reasons remain the fear of the trade war.
That day, the red metal was traded at $ 2.90277 a pound on the London Metal Exchange a value that compares to the price of the metal went into what is called "correction phase" that is, when a 10% drop since its last peak – with the result of yesterday was 11% – of the maximum of 3.29 US $ last June.
The numbers make the government nervous yesterday expressed its concern about the fall in the price of copper. "For the public policies we are promoting, it is imperative that copper be located above $ 3 a pound, as it did three months ago," said Minister of Mines Baldo Prokurica at 39, a press conference.
According to analysts, the imminent start of the trade war between the United States and China, tomorrow July 6, with the entry into force of US tariffs to Chinese products for $ 34 billion, is at Origin of the collapse of the price the Minister of Finance, Felipe Larraín, who, in addition to being preoccupied, pointed out that the loss "has unfortunately a lot to do with the trade war the fundamental reason is the prospect of a confrontation like this. "
" It is clear that probably those who started this process have no interest in generating these effects, but they are generated, and we already know how "
Larraín's expectations are that it is a transient effect and if the price of copper continues to s & d. "Collapse," in theory, we would have to assess the situation, "the finance minister has declassified "It also gives me the impression that the markets sometimes react excessively, but we do not know if in this case we will have to see it over time. "
Economy, José Ramón Valente, pointed out that" obviously the price of copper is very important to us "and that in the short term, " is something relevant both for public finances and for Chile in general. " [19659002] The Secretary of State added, in statements to Emol, that" current estimates of their value per pound are maintained at levels consistent with long-term projections from the government. "
Valente considered, ne" It is important that Chile understands that its economic development goes beyond copper, and that in the end, the country will be well or badly counted on us, the Chileans, much more than we can depend on the price of the red metal. "
Another consequence that could affect the budget portfolio regarding the eventual trade war, is that China has warned that if the tax barriers announced by the Donald Trump government materialize, it would respond the same way.
The situation tended the markets in the last time and the experts think that to realize the trade war, the projections of economic growth at the world level will decrease, while a possible descent into China's growth would directly affect the demand for copper and the price of the metal.
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