On June 29, Ag Metal miner reported that the copper price had fallen to a 16 month low. Global growth in commodities is slowing and investors are becoming increasingly pessimistic. However, Chile, as one of the largest copper mining countries in the world, has seen the dawn.

Copper price has long been regarded as a major indicator of the health of the global economy. Therefore, when the copper price fell to a 16 month low on June 23, investors quickly pressed the “panic button”. Commodity prices fell 11% in two weeks, indicating that global economic growth is slowing. However, not everyone agrees.

Recently, it was reported that Codelco, the state-owned copper mine in Chile, did not think that bad luck was coming. As the world’s largest copper producer, Codelco’s view carries weight. Therefore, when Maximo Pacheco, chairman of the board of directors, faced this problem in early June, people listened to his views.

Pacheco said: “we may be in a temporary short-term turmoil, but the important thing is the fundamentals. The balance of supply and demand seems to be very beneficial for those of us who have copper reserves.”

He is not wrong. Copper is widely used in renewable energy systems, including solar, thermal, hydro and wind energy. As the price of traditional energy has reached a fever pitch in the world, green investment is on the rise.

However, this process takes time. On Friday, the benchmark copper price on the London Metal Exchange (LME) fell 0.5%. The price even fell to $8122 per ton, down 25% from the peak in March. In fact, this is the lowest registered price since the middle of the epidemic.

Even so, Pacheco did not panic. “In a world where copper is the best conductor and there are few new reserves, copper prices look very strong,” he said

Investors looking for answers to repeated economic difficulties may be tired of Russia’s war in Ukraine. Unfortunately, the impact of the four month war on copper prices cannot be underestimated.

After all, Russia has tentacles in dozens of industries. From energy and mining to telecommunications and trade. Although the country’s copper production accounted for only about 4% of the global copper production, the sanctions after its invasion of Ukraine seriously shocked the market.

As early as the end of February and the beginning of March, copper prices soared like other metals. The concern is that, although Russia’s contribution is negligible, its withdrawal from the game will stifle the recovery after the outbreak. Now the discussion about the economic recession is almost inevitable, and investors are becoming more and more pessimistic.