Weekly behavior of copper price.

Today the price of copper stood at ¢ US $ 276.6 per pound, with an increase of 8.9 cents per
pound compared to last Friday, to 3.3%. This week was marked by the message of the president of
the FED, which left the policy rate unchanged monetary policy and noted that the federal agency
would adopt a more paused strategy in future increases in the interest rate.

The international dollar depreciated and the copper price found a new equilibrium, also supported
by an increase in the value of the yuan.

The International Copper Study Group estimated that in the period January-October 2018, the
world copper market recorded a 545 thousand tons of refining, due to a number unexpectedly
high interruptions in foundries, particularly the casting of Tuticorin de Vendanta in India.

United States: Pause signal in increases in the rate of monetary politics.

The president of the FED, Jerome Powel, pointed out that arguments for future increases in the
interest rate had weakened, the strongest sign of the end of the monetary tightening cycle after
the Subprime crisis. The message was designed to convey the perception of a maximum degree of
flexibility on the part of the Central Bank of the United States, after recent volatility in the financial
markets, weak global growth and the effects of partial closure of the federal government that
generate uncertainty. Consequently, the dollar resumed the downward bias and had a positive
impact on the prices of basic metals.

China: Manufacturing growth expectations continue to decline.

In January, the activity of the manufacturing industry, which explains a relevant fraction of
copper demand, contracted for the second consecutive month due to the drop in export orders
and lower domestic demand, reinforcing the perception that the growth projection of the GDP for
the current year of 6.2%, according to the IMF, could not be met if the commercial tensions with
the United States are not resolved. The PMI (Purchasing Managers Index), calculated by the
private agency Caixin, stood at 48.3 points in January against expectations that anticipated 49.5
points, the lowest level since February 2016. The surprising drop in the PMI returned to reduce
investor confidence in the growth outlook for basic metals demand, limiting the price rise induced
by the depreciation of the dollar to beginnings of week.

Exposure of investment funds to the copper market

This week, the net exposure (purchases-sales) of contracts to copper futures by investment funds,
which operate on the London Metal Exchange, continued to deepen the short position (sale).
Investors are on hold awaiting the outcome of the trade talks between China and the United
States, new data anticipating the degree of China's slowdown and the possible economic boost
measures. The downward bias of the dollar, metal deficit expectations projected for the current
year and the low level of Inventories on the stock exchange do not manage to modify the risk
aversion and investors continue to reduce the metallic commodities of their investment portfolios.