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The Price of Copper Increases in Chile
The price of copper has risen 20% this year and 30% since last October. This price increase has not been accompanied by other metallic or non-metallic minerals, except for silver. We evaluate different models based on copper price fundamentals and consider that it is not possible to explain the recent increase with traditional macroeconomic and/or financial determinants (chart 1). Speculative agents (non-commercial) have significantly increased their net long positions. Despite this, it is not possible to explain the speed and level of the copper price. We rule out renewed spot demand for copper as the driver ... (full story)