SANTIAGO, Chile Global economic uncertainty has contributed to copper market volatility, leaving investors struggling to predict future prices, the president and chief executive officer of Corporación Nacional del Cobre de Chile (Codelco) said.
Speaking at the 12th World Copper Conference in Santiago, Thomas Keller Lippold said that price fluctuations in copper have lots to do with the issues facing the world economy.
One could think the price response has very little relationship to what is happening on the supply-demand side of the copper industry, Keller said. But actually, the market tries to infer what the behavior of the economy will be in the future and applies these projections to the copper supply-demand side. The volatility is not a new paradigmits a new reality.
Investors remain fairly nervous and constantly looking for new information on what the future will be, Keller said.
The head of the Santiago-based company was speaking as copper prices traded at around $7,500 per tonne, down from highs of greater than $9,800 in early 2011.