Copper slump and broader metal price falls pressure Peru and Chile markets

On July 13, prices for most base metals on the London Metal Exchange slipped, with three‑month copper closing at $13,479 per tonne, down $5.50 (‑0.04%). Aluminum rose modestly, while nickel, lead, tin and zinc each fell between 0.5% and 2.5%. The declines were linked to an "inflation‑rate‑dollar" feedback loop triggered by heightened US‑Iran tensions, rising oil prices, renewed inflation concerns, and sharply higher US dollar expectations as the Federal Reserve signals aggressive rate hikes.

Copper, the key industrial metal for the Andes, dropped about 3.85% in the last week of June to a seven‑week low of $13,066 a tonne. The fall, driven by a strong dollar and hawkish Fed outlook, hit the stock markets of the region unevenly: Peru’s market moved roughly 0.85% for each 1% change in copper, making Lima far more exposed, while Chile’s broader IPSA index showed a weaker link.

Adding to market anxiety, the United States is considering a 15% tariff on refined copper imports starting in 2027, with the rate potentially rising to 30% by 2028. Analysts estimate a 43% chance the tariff will be imposed, raising further concerns for copper‑dependent economies.