Chile’s robust, flexible fiscal and macroeconomic policy frameworks are an important buffer against falling copper prices, Fitch Ratings says. Low public debt and significant resources in its stabilization funds also underpin shock-absorption capacity. But lower copper prices present downside risks to investment and growth, and highlight structural challenges, including the economy’s narrow base.

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Reuters reported that Chile’s commodity dependence is more evident in its external accounts (copper made up 51% of exports in 2014) than its fiscal accounts. The fiscal framework buffers spending from cyclical swings in copper prices by basing budgets on a long-term copper price estimate, $3.07/pound in the 2015 budget.

At JPY 703,000 ($5,972) per metric ton, the cash price of Japanese copper moved up 2.0% on Tuesday, January 20, making it the day’s biggest mover. The price of US copper producer grade 110 steadied at $3.36 per pound following two-days of increases. The price of US copper producer grade 102 ended a two-day climb, settling at $3.55 per pound. The price of US copper producer grade 122 flattened at $3.36 after two days of improvement.

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Chinese copper prices were mixed for the day. The price of Chinese copper bar declined 0.7% to CNY 42,600 ($6,852) per metric ton. The cash price of Chinese copper fell 0.7% to CNY 42,800 ($6,884) per metric ton. Chinese copper wire closed 0.4% lower at CNY 41,780 ($6,720) per metric ton. At CNY 37,000 ($5,951) per metric ton, the price of Chinese bright copper scrap was essentially unchanged.

The cash price of primary copper rose 0.3% yesterday on the LME, just off the 30-day low of $5,670 per metric ton it hit on Friday, January 16. After falling 0.1% to $5,642 per metric ton, the copper 3-month price reached a 30-day low on the LME.