Glencore Cuts Nickel Production Guidance for 2023
Commodity Trader Glencore Maintains Overall Output Guidance
Commodity trader and miner Glencore has announced that it will maintain its overall 2023 guidance for zinc, coal, and cobalt output. However, the company has revised its nickel production outlook due to maintenance and strikes. This decision comes as Glencore aims to optimize its operations and navigate the challenges posed by external factors.
Trading Division Expects Strong Profits
In addition to its production guidance, Glencore has shared positive news regarding its trading division. The company anticipates that profits will surpass the upper end of its long-term guidance range of $2.2-$3.2 billion per year. With an expected outcome within the $3.5-4.0 billion range, Glencore’s trading division continues to demonstrate its stability and potential for growth.
Decline in Copper and Nickel Production
Despite its overall output guidance, Glencore has experienced a decline in its own sourced copper and nickel production. Year to date, copper production has decreased by 5%, while nickel output has seen a significant drop of 16%. These figures indicate the impact of various factors such as maintenance outages and recovery from strike actions.
Revised Nickel Production Forecast
Glencore has adjusted its guidance for full-year nickel production, reducing it by 9% to approximately 102,000 tons. The company attributes this revision to maintenance outages at the Sudbury smelter, a longer-than-expected recovery from the 2022 strike action, and a lower full-year revision for Koniambo. Glencore is actively managing these challenges to ensure efficient operations.
With these updates, Glencore demonstrates its commitment to adapt to market conditions and maintain its position as a leading commodity trader and miner. The company’s strategic decisions and focus on optimizing production will contribute to its long-term success.
