The price of copper fell this week by 2.6% with respect to the previous one, after closing today at 2,902 dollars per pound, because of the retreat of Chinese exports and the largest trade deficit of the United States, among other factors, said the Comis ion Chilena del Cobre (Cochilco).
In its weekly market report, which analyzes factors related to the price of the main Chilean product, Cochilco said that it reduces the Chinese exports during February (- 20%) It suggests a weakening in the growth potential of the Asian giant in 2019.
Something that is also anticipated in the United States with the expansion of its trade deficit and the fall of investment in the construction sector, said the Chilean Agency.
The deficit in the US balance of trade increased to its highest level in 10 years, mainly by the negative balance with China and despite the increase in tariffs imposed by the Asian country, said Cochilco.
In China negative signals anticipate a slowdown in GDP (gross domestic product) for the first quarter in a year in which the Government set a target of growth of between 6 and 6.5 per cent.
The analysis pointed out that the positive signals coming from the negotiations of the United States and China on trade war, and the announcement of the Chinese of a decline in the tax to the added value (VAT), as well as other announcements from Beijing in the same direction, are giving support to the price of copper on international markets.
With respect to the exhibition of investment funds related to copper markets, the report stressed that this week the increase in positive net exposure (compras-ventas) in future contracts continued pushing upward the price of the metal.
Cochilco, however, admitted that part of the procedure described is due to speculative factors induced by the expectations of the negotiations between the United States and China, to the low levels of inventories of copper in metals and optimism bags front China economic announcements.
During the week, copper inventories fell by 0.58%, equivalent to 2,337 metric tons, which so far of the year accumulated an increase of 14.6 per cent, to 402.043 tonnes.