Copper represents almost half of Chile’s export to China
Since second half of January, its price began to drop in 10% due to threat of coronavirus epidemic.
Coronavirus epidemic already impacted commodity price, which involves mainly petroleum and natural gas. Yet, price of other raw materials was affected, too. For example, copper has lost 10% of its price since half January, when first news on Covid-19 epidemic threat appeared. As such, copper is the cheapest since last October.
Chile represents one of the countries, which are impacted by the epidemic and will further be affected by it. Export represents 60% of Chile’s GDP, while one third of export goes to China. Half of income from export to China stands for copper. In only few first months of last year, Chile exported copper in the value of $14 billion to China.
Codelco, Chile’s state-owned copper mining company, does not experience drop in orders from China yet. But it monitors the situation and already implemented some measures in case situation in the most populous country in the world worsens. China purchases groceries in Chile, yet its purchase dropped in 50-60% since the outbreak of a coronavirus epidemic.
