(Repeats Aug 30 column. The opinions expressed here are those
of the author, a columnist for Reuters.)
By Andy Home
LONDON Aug 30 It’s been nearly a year since
Glencore announced it was mothballing half a million
tonnes of mined zinc capacity.
At the time there was a good degree of scepticism in the
zinc market that the company would make good on its promise.
But it did and the London Metal Exchange (LME) zinc price
hasn’t looked back since. Three-month metal is currently trading
just above $2,300 per tonne, compared with $1,700 at the time of
the announcement back in October 2015.
Indeed, zinc has been the hottest base metal in town this
year with investment managers jumping on the band-wagon.
Which makes the question of how long Glencore will hold its
cuts ever more pressing.
Just don’t expect an answer yet.
Several analysts tried to pin Glencore Chief Executive Ivan
Glasenberg down on…