“Economic indicators suggest that Chile is getting weaker as copper prices are sliding. For instance, exports have been shrinking, led by the decline in copper prices, as the chart below indicates. Both the government budget and the trade balance are now in a deficit, which seems to be getting bigger as time goes by,” according to a Seeking Alpha analysis of ECH and copper prices.

Some commodities, like copper, are lower on the economic weakness in China, a major raw materials consumer, and other emerging markets.

Earlier in July, Deutsche Bank also cut its copper projections due to weak Chinese demand. DB also expects rising supply in 2016 on new mine commissions, which could cause copper to “remain vulnerable to periodic bouts of ‘shorting.’”

“The copper market is facing two or three years more of pain, though the good news for the metal, which hit a six-year low this week, is that it will recover faster than other commodities, according to Rio Tinto Group,” reports David Stringer for Bloomberg.

iShares MSCI Chile Capped ETF