Chile’s economy is highly dependent on copper mining activities. The recent long strike at BHP Billiton’s Escondida copper mine continues to impact Chile.
India’s equity markets are soaring so far in 2017, pushing valuations above their long-term averages. India’s economy is scoring well due to high GDP growth and government reforms.
The price of copper has increased from around $4,470 per metric ton in January 2016 to more than $4,800 per metric ton in July 2016. That’s a rise of 7.4%.
The recent surge in soybean prices can coincide with the expectation of a strong El Niño effect, damaging the soya crops. In 1998 and 2010, the El Niño effect led to a surge in soybean (SOYB) prices.
Latin American markets were trading higher on July 9—taking cues from other emerging markets. Brazil’s inflation rate was released lower at 8.8% in June.
In many Latin American (ILF) (ECH) countries, higher growth and development have been accompanied by loss of competitiveness and a decline in productivity.
Changing demographics in Latin America are driving innovations. Young people, which account for 25% of the total population, are more likely to accept innovation.
Brazil (EWZ) (BRZU) is a favorite emerging market (EEM) (VWO) (EDC) for Mark Mobius. According to Mobius, there are tremendous opportunities in Brazil.
Earnings growth in Argentina remains unmatched compared to its peers. Over the past two years, we’ve seen its forward earnings per share rise by over 50%.
With its large amount of copper resources, Chile accounts for over a third of global copper output. Copper accounts for about 55% of all Chilean exports.
The Chilean peso gained against the US dollar on February 12 on the back of the unchanged monetary policy by its central bank and a surge in commodities.
On September 25, spot copper closed at $5,098 per metric ton on the London Metals Exchange. Copper prices had hit their six-year closing low of $4,888 per MT on August 24.
Copper prices are testing their six-year lows. Copper miners such as Freeport-McMoRan and BHP Billiton are now rethinking their business plans to tackle the low commodity price scenario.
China produced 607 thousand tonnes of refined copper in April. Although the copper production in April increased on a YoY basis, it declined compared to March.
Peru’s refined copper production declined over the last few years. Peru was the world’s second largest copper producer in 2007. Currently, it’s ranked third.
On a year-over-year basis, Chilean refined copper production fell by more than 1%. Incessant rains causing flooding are behind the decline in February’s copper production.
