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Reuters reported that the nickel price has bounced back from a seven-year low on the back of news that Glencore plc (LSE:GLEN) plans to reduce its copper and zinc production.
Reuters reported that the nickel price has bounced back from a seven-year low on the back of news that Glencore plc (LSE:GLEN) plans to reduce its copper and zinc production.
On Tuesday, LME nickel was sitting at $10,460 per tonne, 15 percent higher than it was in August, when it hit its lowest price since December 2008.
As quoted in the market news:
Glencore is the world’s fifth-biggest producer of nickel, with operations in Australia, Canada, Norway, New Caledonia, and Dominican Republic, much of which was acquired in its 2013 takeover of Xstrata.
Glencore, whose shares have been hammered by worries about its debt burden, declined to comment on the speculation.
“In nickel, as in copper and zinc, an output cut by Glencore could have an immense impact,” said Minelife commodities analyst Gavin Wendt.
“It would not only send the right message to Glencore’s investors and bankers, it would be saving the company money and probably lift the nickel price in the process.”