Glencore (GLEN.L), a commodities trader and miner, reduced its forecast for nickel production due to maintenance and strikes on Monday but kept its overall 2023 guide for output of copper, zinc, coal, and cobalt.
The London-listed miner predicted earnings at its trading division “with a likely outcome within the previously communicated $3.5-4.0 billion range”—beyond the upper half of its long-term projection range of $2.2-$3.2 billion annually.
Glencore’s own sourced nickel output was down 16% at 68,400 tons, while its own sourced copper production was down 5% at 735,800 metric tons year to date. Glencore reduced its forecast for nickel output to around 102,000 tons for the entire year by 9%.
“Nickel has been reduced to reflect maintenance outages at the Sudbury smelter and a longer than expected recovery from 2022 strike action, together with a lower full-year revision for Koniambo,” the company said in a statement.
In conclusion, the reduction in Glencore’s projected nickel output in 2023 represents a noteworthy shift in the commodities market. Contributing factors to this decision were supply chain interruptions, environmental requirements, and market instability. This judgment affects several industrial sectors, industry participants, and nickel prices. All industry participants must keep a close eye on the nickel market and stay updated about these changes.
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