Glencore expects profit at its trading division this year to be at the top end of its long-term annual guidance, in an elevated interest rate and high commodity price environment, it said on Tuesday.
The miner and trader expects full-year marketing earnings before interest and tax (EBIT) in the $3 billion-$3.5 billion range, around the top-end of the firm’s long-term $2.2 billion-$3.2 billion forecast range.
However, the company left its full-year production forecast unchanged. For the first quarter, Glencore reported total copper production of about 239,700 metric tons, down 2% from a year ago, but 2% higher on a year-on-year basis.
Analysts expect significant shortage in the copper market this year but copper consumption is expected to rise as some economies shift to renewable energy and copper remains key to the development of electric vehicles, artificial intelligence and automation.
Copper prices have rallied this week on the back of news that miner BHP was proposing to bid for Anglo American.
Glencore’s main competitor BHP is considering making an improved offer for Anglo American after its $39 billion initial proposal was rejected. Much of the focus of BHP’s bid has been on copper and a tie-up with Anglo would forge a group accounting for about 10% of global output of the metal.
Production of key materials – cobalt and nickel- also used in the making of electric vehicles dipped 37% and rose 14%, respectively, Glencore said.
(By Chandini Monnappa; Editing by Sonia Cheema and Michael Perry)
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