Adrian Hargrave, CEO of SEEEN, explains how the new funds will accelerate customer growth Watch the video here.

Less Ads, More Data, More Tools Register for FREE

Pin to quick picksGlencore Share News (GLEN)

Share Price Information for Glencore (GLEN)

London Stock Exchange
Share Price is delayed by 15 minutes
Get Live Data
Share Price: 473.60
Bid: 473.55
Ask: 473.70
Change: 3.55 (0.76%)
Spread: 0.15 (0.032%)
Open: 472.10
High: 475.50
Low: 471.00
Prev. Close: 470.05
GLEN Live PriceLast checked at -

Watchlists are a member only feature

Login to your account

Alerts are a premium feature

Login to your account

Copper smelters in leading buyer China wary of BHP-Anglo American tie-up

Tue, 30th Apr 2024 14:11

April 30 (Reuters) - Chinese smelters, the world's biggest buyers of mined copper, are concerned they will lose power to negotiate prices if BHP Group, known locally as "the big miner", succeeds in its bid for rival Anglo American .

BHP, the world's largest listed mining group, is fine-tuning an offer that could make it the biggest producer of copper, a metal in high demand as the world seeks to shift towards electric vehicles and a lower carbon economy.

The proposed takeover would give BHP control of roughly 10% of global mined supplies, surpassing Chile's Codelco and Freeport-McMoRan.

"This is not good news for China given the heavy reliance on external supply, and Chinese companies hold limited resources," Zhang Weixin, a metal analyst at China Futures, said of the potential tie-up.

The China Smelters Purchase Team (CSPT), a group of top smelters that negotiates with miners on yearly prices to treat and refine copper, has no current plans to urge Beijing to investigate the deal, three sources familiar with the matter said.

CSPT's head could not be reached for comment and BHP declined to comment.

China's State Administration for Market Regulation also did not immediately respond to a request for comment.

There is a precedent of Chinese regulators getting involved in deals that impact copper supply.

In 2011, Glencore agreed to China's demand that it sell its interest in Xstrata's Las Bambas copper project in Peru to clinch their multi-billion dollar deal.

The world's leading consumer of the metal, China imported 27.54 million metric tons of copper ore and concentrate in 2023, worth $60.1 billion, customs data showed, more than half of global supplies.

TIGHT MARKET

In China, BHP is most active in the spot market, where it sells to domestic smelters using tenders, according to smelters and analysts, signing contracts for fixed volumes to be priced via an index provided by third parties.

Chinese copper smelters said the prospect of more supply being sold under index pricing could increase uncertainty for costs and planning.

None of the smelter officials wished to be identified given the sensitivity of the matter.

One of them said index pricing meant smelters would be unable to estimate production costs and to draw up a full-year production plan.

Smelters are still recovering from supply shortages driven by the December closure of the First Quantum's Cobre Panama mine, which drove down treatment charges (TCs) - their main source of income.

Treatment charges are fees paid by miners for converting raw materials into metal. They fall when mine output decreases as smelters have to compete for concentrate.

Adding to their difficulties, the concentrate market is expected to be in deficit for the next three years.

Last week, spot treatment charges (TCs) in China turned negative for the first time since pricing agency Fastmarkets started the index in 2013.

That compares with 2024 benchmark TCs settled between Chinese smelters and Freeport and Antofagasta at $80 per ton.

Much as consolidation raises concerns, however, William Adams, head of base metals research at Fastmarkets in London, said it could calm the market longer term by tackling the high cost and risk of developing mines.

"Look at the current tightness in spot treatment and refining charges, which is because there is insufficient mine supply to meeting smelter's demand, highlights the need to invest more upstream," he said. (Reporting by Siyi Liu in Beijing, Julian Luk in London, Mai Nguyen in Hanoi, Melanie Burton in Melbourne; Editing by Tony Munroe and Barbara Lewis)

More News
15 Mar 2024 08:39

RBC hails cash flow potential at Glencore, keeps at 'outperform'

(Sharecast News) - RBC Capital Markets has reiterated its 'outperform' rating on Glencore following the mining and commodities giant's annual results last month, saying its cash generation potential remains "solid".

Read more
14 Mar 2024 10:24

PRESS: Hedge fund urges Glencore to move listing to Sydney - FT

(Alliance News) - Glencore PLC has been asked by a hedge fund to move its primary listing from London to Sydney, the Financial Times reported on Thursday.

Read more
13 Mar 2024 17:05

REPEAT: LONDON MARKET CLOSE: FTSE 100 in green as UK economy rebounds

(Correcting error in article lede.)

Read more
13 Mar 2024 16:54

LONDON MARKET CLOSE: FTSE 100 in green as UK economy rebounds

(Alliance News) - can you change lede to: European stocks closed mostly higher on Wednesday, with the FTSE 100 driven higher by hopes that the UK recession is already over.

Read more
13 Mar 2024 15:00

London close: Stocks mixed as UK economy returns to growth

(Sharecast News) - London markets finished with a mixed performance on Wednesday, following a surge on Tuesday, with investors buoyed by news of the UK economy's return to growth in January.

Read more
13 Mar 2024 09:25

LONDON BROKER RATINGS: JPMorgan raises Flutter and cuts Entain

(Alliance News) - The following London-listed shares received analyst recommendations Wednesday morning and Tuesday:

Read more
11 Mar 2024 14:48

London close: Stocks mixed as investors look to US inflation data

(Sharecast News) - London markets closed in a mixed state on Monday, reflecting a broader trend of cautious trading after a primarily weaker session in Asian markets overnight.

Read more
11 Mar 2024 08:48

LONDON MARKET OPEN: European stocks lower ahead of US inflation data

(Alliance News) - Stock prices in London opened a touch lower on Monday, with miners in the red despite some promising inflation data out of China, as eyes turn to Tuesday's consumer price index reading from the US.

Read more
7 Mar 2024 08:54

LONDON BROKER RATINGS: ITV, LondonMetric, Man, Domino's get upgrades

(Alliance News) - The following London-listed shares received analyst recommendations Thursday morning:

Read more
27 Feb 2024 09:23

LONDON BROKER RATINGS: Barclays raises Flutter to 'overweight'

(Alliance News) - The following London-listed shares received analyst recommendations Tuesday morning and Monday:

Read more
23 Feb 2024 09:19

LONDON BROKER RATINGS: Barclays raises Breedon but cuts Domino's Pizza

(Alliance News) - The following London-listed shares received analyst recommendations Friday morning and Thursday:

Read more
22 Feb 2024 09:49

LONDON BROKER RATINGS: Berenberg raises Moneysupermarket.com to 'buy'

(Alliance News) - The following London-listed shares received analyst recommendations Thursday morning and Wednesday:

Read more
21 Feb 2024 15:01

London close: Stocks mixed ahead of Fed minutes, Nvidia results

(Sharecast News) - London's stock markets closed with a mixed performance on Wednesday, as investors awaited updates from the US Federal Reserve and results from AI chipmaker Nvidia.

Read more
21 Feb 2024 08:45

TOP NEWS: Glencore cuts dividend as profit slips amid metal price fall

(Alliance News) - Glencore PLC on Wednesday reported a hefty fall in profit, and cut its dividend, as markets "normalised", and commodity prices fell.

Read more
21 Feb 2024 08:40

LONDON MARKET OPEN: HSBC and Glencore drag FTSE 100 into the red

(Alliance News) - Stock prices in London opened mixed on Wednesday, with the FTSE 100 index weighed down by weak earnings from HSBC and Glencore - among its largest constituents by market cap.

Read more

Login to your account

Don't have an account? Click here to register.

Quickpicks are a member only feature

Login to your account

Don't have an account? Click here to register.