Glencore cuts 2023 nickel guidance as strikes hit production

Glencore announced on Monday it has reduced its nickel production guidance for this year by 9% to approximately 102,000 metric tons due to maintenance and strikes.

The company reported a longer-than-expected recovery period following the extended Raglan strike action in 2022, maintenance outages at the Sudbury smelter, and a lower full-year projection for Koniambo.

Glencore’s own sourced nickel output was down 16% at 68,400 tons in the first three quarters of the year, while its own sourced copper production of 735,800 metric tons fell 5%.

The commodities giant, however, reiterated its expectation that profits from its trading division would be $3.5-$4 billion, above its long-term guidance range.

Glencore maintained its overall 2023 guidance for copper, zinc, coal and cobalt output.

Its trading division includes coal, oil, liquefied natural gas and related products, as well as metals, whose profit hit a record $6.4 billion in 2022, up 73% from the previous year.

Glencore’s own sourced cobalt production year to date was 32,500 tons down 2% from the same period last year, zinc output at 672,100 tons fell 4% and ferrochrome output at 873,000 tons dropped 21%.

(With files from Reuters)