Glencore May be Planning to Release Zinc into the Market

Reuters reported that with major miner Glencore plc (LSE:GLEN) planning to liquidate some of its commodities inventory, large amounts of zinc could be released onto the market. Glencore is planning the liquidation in order to help pay off its debts.
The move could depress the zinc price as London Metal Exchange inventories of the base metal have “surged more than 40% since early August.”
As quoted in the market news:

… mining and trading company Glencore may add further to a plentiful supply situation after announcing a raft of measures to slash its net debt of $30-billion.
At interim results last month, Glencore said it was cutting “readily marketable inventories” by $1.5-billion. Last week it said it was further reducing working capital by an additional $1.5-billion, partly from liquidating more inventories.
Swiss-based Glencore gave no details about which inventories it was selling off and a spokesman declined to comment.
Glencore had inventories worth $23.6-billion at the end of June, but financial statements did not provide a breakdown of inventories by commodity. Glencore has operations ranging from metals to coal to grains.

Click here to read the full Reuters report.