The price of copper continues to rise and during the month of November it reached its best price in seven years and eight months on the London Metal Exchange, upon reaching the $ 3.48 a pound.
During the month of December, the good streak continued and this Monday it closed at $ 3.27 per pound, an increase that -according to experts- it could be maintained for the next year.
The studies manager of the National Mining Society, Álvaro Merino, explained to Cooperative Radio that this continuous rise is good news for Chile, since it “invigorates the economy, and increases the contribution of this productive sector to fiscal financing.”
“Indeed, For each average annual dollar cent that the copper price increases, Chile increases its revenues by 125 million dollars for exports, and the Treasury in 60 million, for the concept of surpluses of Codelco and taxation of private mining, “he explained.
Due to the good indications of the red metal, some experts already compare it to gold. This is the case of the general manager of Renta4, Arturo Frei, who specified: “Gold has always functioned as an active refuge in times of crisis or low growth, while copper slows down in times of crisis, but on that occasion the situation is not like that, since both have good prospects ”.
Why did the price of copper go up?
The rise in the value of this metal is mainly due to the economic recovery of China, which alone accounts for more than 50 percent of world imports.
However, progress in testing the coronavirus vaccine has also played a role, as the optimism that comes with an eventual control of the pandemic favors the conditions of the world economy.
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