1. Homepage
  2. Equities
  3. United Kingdom
  4. London Stock Exchange
  5. Glencore plc
  6. News
  7. Summary
    GLEN   JE00B4T3BW64

GLENCORE PLC

(GLEN)
  Report
Delayed London Stock Exchange  -  11:35 2022-08-15 am EDT
464.50 GBX   -1.67%
08/13Norwegian electrochemical industry workers to strike from Monday
RE
08/12Sky-high energy costs to fan fire under aluminium and zinc prices
RE
08/12COLUMN - SCARCITY CHANGES THE LME WAREHOUSING GAME : Andy Home
RE
SummaryQuotesChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
SummaryMost relevantAll NewsAnalyst Reco.Other languagesPress ReleasesOfficial PublicationsSector newsMarketScreener Strategies

Tight LME zinc inventories could be topped up from China

06/22/2022 | 12:16pm EDT
FILE PHOTO: Traders work on the floor of the London Metal Exchange, in London

LONDON (Reuters) - Available zinc inventories in registered warehouses of the London Metal Exchange (LME) more than halved this week, but supplies could be replenished from China, where stocks have been rising, analysts said.

LME zinc inventories have been eroding this year, evidence of supply problems in Europe and the United States as smelters reduce output, a contrast to the more plentiful picture in China.

Zinc inventories Erode on LME, climb in Shanghai https://fingfx.thomsonreuters.com/gfx/mkt/myvmnrazjpr/Zinc%20Inventories%20Erode%20on%20LME%20climb%20in%20Shanghai.png

The situation became more serious this week after owners of 35,000 tonnes of zinc inventories in LME warehouses gave notice they want to withdraw the material, slashing available stocks by 56% to 26,325 tonnes.

"This clearly led to concerns about supply and renewed fears that the zinc market could find itself squeezed on account of the low stocks," Commerzbank analyst Daniel Briesemann said in a note.

A scramble to access available material sent the spread between LME cash zinc and the three month contract soaring to a three-year high of $148.60 a tonne on Wednesday from only $14.30 last week.

Zinc premiums shoot up in Europe, United States https://fingfx.thomsonreuters.com/gfx/mkt/zdvxoexmgpx/Zinc%20Premiums%20Shoot%20Up%20in%20Europe%20United%20States.png

The shortages are partly due to zinc smelter cutbacks in Europe by producers Trafigura, Glencore and others in the face of power prices that hit three-month highs on Tuesday.

That has forced up the premium buyers pay over the LME price for physical metal in Europe and the United States, a big contrast to declining premiums in China.

Zinc Spread Soars on Supply Worries

In China, weaker demand due to an economic slowdown and COVID-19 lockdowns has lead to rising inventories, which may help rebalance the global picture.

Zinc inventories in Shanghai Futures Exchange warehouses have more than doubled this year to 159,672 tonnes.

"We hear there is stock coming from onshore (China) to the LME (warehouses)," Al Munro at broker Marex said in a note.

Another analyst, who declined to be named, said such a move would make sense because LME prices are trading at a premium to Shanghai prices and arbitrage deals could be profitable to ship from China to LME.

The physical tight conditions have supported benchmark LME zinc prices, which are the best performers on the exchange over the past three months.

All industrial metals prices have seen losses due to a slowdown in top metals consumer China and fears of a global recession eroding demand, but zinc has declined less than others.

(Reporting by Eric Onstad; Editing by Mark Potter)

By Eric Onstad


© Reuters 2022
Stocks mentioned in the article
ChangeLast1st jan.
COMMERZBANK AG -0.11% 7.134 Delayed Quote.6.77%
GLENCORE PLC -1.67% 464.5 Delayed Quote.25.99%
S&P GSCI INDUSTRIAL METALS INDEX 0.16% 436.728 Real-time Quote.-11.09%
S&P GSCI ZINC INDEX 0.38% 284.3752 Real-time Quote.1.69%
All news about GLENCORE PLC
08/13Norwegian electrochemical industry workers to strike from Monday
RE
08/12Sky-high energy costs to fan fire under aluminium and zinc prices
RE
08/12COLUMN - SCARCITY CHANGES THE LME WA : Andy Home
RE
08/12MARKETSCREENER'S WORLD PRESS REVIEW : August 12, 2022
MS
08/12FTSE 100 Rises as Gaming, Oil, Financial Stocks Gain
DJ
08/12Glencore Halts Supplies to Chinese Trader Over $500 Million of Copper Missing, Financia..
DJ
08/11Glencore Stops Supplies To Chinese Metals Merchant After $500 Million Of Copper Goes Mi..
MT
08/11Glencore cuts ties with Chinese trader caught up in scandal over missing copper -FT
RE
08/11Ocra Energy Names COO
MT
08/11Miners face supply chain overhaul to meet U.S. EV credit deadline
RE
More news
Analyst Recommendations on GLENCORE PLC
More recommendations
Financials (USD)
Sales 2022 272 B - -
Net income 2022 20 598 M - -
Net Debt 2022 23 809 M - -
P/E ratio 2022 3,56x
Yield 2022 9,98%
Capitalization 73 274 M 73 274 M -
EV / Sales 2022 0,36x
EV / Sales 2023 0,38x
Nbr of Employees 135 000
Free-Float 81,3%
Chart GLENCORE PLC
Duration : Period :
Glencore plc Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends GLENCORE PLC
Short TermMid-TermLong Term
TrendsBullishNeutralNeutral
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus BUY
Number of Analysts 20
Last Close Price 5,61 $
Average target price 7,19 $
Spread / Average Target 28,2%
EPS Revisions
Managers and Directors
Gary Nagle Chief Executive Officer & Director
Steven F. Kalmin General Manager-Finance
Kalidas V. Madhavpeddi Chairman
Patrice E. Merrin Independent Non-Executive Director
Martin James Gilbert Senior Independent Non-Executive Director
Sector and Competitors
1st jan.Capi. (M$)
GLENCORE PLC25.99%74 805
BHP GROUP LIMITED-6.43%139 440
RIO TINTO PLC-0.98%98 453
SAUDI ARABIAN MINING COMPANY (MA'ADEN)90.83%45 421
ANGLO AMERICAN PLC-1.76%43 613
GRUPO MÉXICO, S.A.B. DE C.V.-6.16%32 804