HomeBase MetalsGlencore reports robust metals trading

Glencore reports robust metals trading

London, England — 10 May 2012 – The world’s largest diversified commodities trader Glencore International says trading, including metals, was robust in the first quarter of 2012 while mining projects it hopes will drive production growth were on schedule despite power outages, rain and equipment glitches.

Quoting Reuters, Fin24 reports that in a statement issued here, the company gave no update on its US$35 billion takeover of global diversified mining group Xstrata, which is in the final stages. But it did confirm plans for at least US$500 million of synergies.

Glencore said that its trading division, which accounted for more than a third of operating profit last year, had seen improved fundamentals in its core metals in the first quarter, as well as the oil market, grains, oilseeds.

The strong trading signals helped Glencore’s shares rise over 2%, outperforming a 0.3% gain in the broader mining sector, despite production results that were weaker than some analysts had expected in key segments like copper.

Gold, nickel and zinc dipped, while copper output was hit by a mill failure and power cuts in the DRC and the temporary closure of a treatment plant in Zambia over what local authorities said were pollution violations.

“Glencore has traded well across all segments of its business in 2012,” the trader said, without giving any figures. “Demand from China, the world’s largest consumer of commodities, continues to be healthy,” it added.

Source: Fin24. For more information, click here.