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Oct 9, 2015

Zinc surges 12 pct after Glencore cuts output, fuelling metals rally

LONDON, Oct 9 (Reuters) – Zinc surged 12 percent to a
two-month peak on Friday and other base metals also rose
strongly after commodities group Glencore said it would cut its
zinc output by a third, sparking a short-covering rally across
the board.

Zinc’s jump higher, its biggest one-day gain in at least a
decade, followed Glencore’s announcement that
it will cut 500,000 tonnes of annual zinc production, equivalent
to around 4 percent of global supply, in its latest response to
weak commodities prices.

Oct 8, 2015

Copper at risk of sliding below $4,000 – Goldman

LONDON, Oct 8 (Reuters) – Copper prices are at risk of
tumbling below $4,000 a tonne after demand for the metal in top
consumer China collapsed this year, according to an analyst from
Goldman Sachs, a bank known for its bearish views.

Benchmark copper on the London Metal Exchange has
slid nearly a fifth this year, hitting a six-year low of $4,855
a tonne in August.

Oct 6, 2015

Glencore plays down impact of possible debt rating downgrade

LONDON, Oct 6 (Reuters) – Commodity group Glencore,
whose shares have been hammered by worries about its debt
burden, sought to assure investors that the impact of any credit
rating downgrade on its debt profile would be modest.

Glencore has investment-grade credit ratings, of BBB from
Standard and Poor’s and Baa2 by Moody’s Investors Services, but
some analysts and investors have speculated about a possible
downgrade if hard-hit commodity prices remain weak.

Sep 30, 2015

Copper hits one-week high as investors close positions

LONDON, Sept 30 (Reuters) – Copper hit the highest in a week
on Wednesday while nickel touched a two-week peak as bearish
investors closed out positions at the quarter-end and ahead of
Chinese holidays.

The market also got a boost from a bounce in the shares of
hard-hit commodity group Glencore and from news about
planned declines in production and inventories that may tighten
the copper market.

Sep 29, 2015

Analysts battle over outlook for Glencore

LONDON (Reuters) – A battle between supporters and detractors of Glencore in the analyst community has intensified amid the sharp gyrations in the commodity group’s share price.

Glencore’s shares tumbled about 30 percent on Tuesday in a move attributed to investor panic after the release of a research note by Anglo-South African investment bank Investec which included the phrase “Bermuda Triangle” in its title.

Sep 29, 2015

Glencore seen reluctant to step up asset sales to include top mines

LONDON/JOHANNESBURG (Reuters) – Debt-laden Glencore may unload all its agricultural assets instead of just a stake, analysts said, but the commodity group is unlikely to expand its divestment program to include top mines.

Selling assets is one prong of a wider strategy by the Swiss-based trader and miner to cut about a third of its $30 billion debt and to regain the trust of investors after its shares tumbled by about three quarters this year to record lows amid weak global commodity prices.

Sep 28, 2015

Copper sinks to one-month low ahead of China factory data

LONDON, Sept 28 (Reuters) – Copper fell to the lowest in a
month on Monday on worries about upcoming data that may show
weak industrial activity in top metals consumer China.

Data on Thursday is likely to show that China’s giant factory
sector shrank for the second month in a row in September,
according to a Reuters poll,

Sep 18, 2015

Glencore inventory sale could sink world zinc prices further

LONDON, Sept 18 (Reuters) – Substantial amounts of base
metal zinc could be released onto world markets, weighing
further on fast falling prices, as major producer Glencore
implements a plan to liquidate some of its commodity
inventories to help pay off debt.

The overhang of inventories in London Metal Exchange (LME)
storage facilities, which has surged more than 40 percent since
early August, has wrong-footed investors who had earlier this
year targeted zinc as a top bet in metals due to closures of big
mines that would create shortages.

Sep 16, 2015

Copper up on weaker dollar ahead of Fed rate decision

LONDON, Sept 16 (Reuters) – Copper prices gained on
Wednesday as the dollar weakened ahead of a U.S. interest rate
decision and after a stock market rally in major consumer China.

A softer U.S. dollar exchange rate against a basket of
currencies helped support metals markets after U.S. consumer
prices unexpectedly fell in August, which dented expectations of
a rise in U.S. interest rates.

Sep 8, 2015

Aluminum premiums in Europe seen mired at low levels on big supply

LONDON (Reuters) – Surcharges for physical aluminum in Europe are due to remain weak after retreating in recent weeks, weighed down by overproduction, new rules that force more outflows from warehouses and difficult conditions for financing.

A constant flow of metal out of warehouses registered by the London Metal Exchange is due to increase after new LME rules designed to slash backlogs twice as quickly as under previous reforms took effect at the start of August.