Glencore Blaming Short Sellers For Falling Copper Price

Glencore( LSE:GLEN) is blaming what it sees as aggressive short selling by hedge funds for driving copper prices downward, Bloomberg reported. CEO Ivan Glasenberg said on a conference call that other factors don’t justify current low prices for the red metal.
As quoted in the publication:

Indicators of supply and demand suggest prices should be higher, the company said in its earnings statement on Wednesday. Mine disruptions from Chile to Zambia mean producers aren’t delivering as much metal as expected, and mining companies may cut production if prices fall further, Glencore said.
“The actual physical flows, the inventory levels are not justifying the prices where they are today,” Chief Executive Officer Ivan Glasenberg said on a conference call. “It’s hedge funds, it’s Chinese hedge funds, it’s U.S hedge funds. They’re all just hitting the commodities at the moment.”
The plunge in copper is hurting companies like Glencore, which reported a 56 percent drop in first-half profit and cut the earnings forecast for its trading division. Copper is down 20 percent this year as China’s slowing economy means less metal is required for construction and manufacturing.

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