Glencore trading profits set to soar amid volatile commodity prices
Glencore is on course to post record profits from its trading business in the first half of the year as it continues to feel the lift of volatile commodity prices.
The London-listed mining and commodity giant said today that it expects trading profits in the first half of the year to exceed $3.bn, compared with the record profits of $3.7bn it posted in the whole of last year, far ahead of a long-term annual guidance range of $2.2bn to $3.2bn.
Wild price swings in the commodity markets sparked by Russia’s invasion of Ukraine have brought on a period of bumper returns for commodity traders, and Glencore said today the volatility had boosted profits in the first half of the year.
“Against this challenging and elevated risk backdrop, our Marketing segment’s financial performance has continued to be supported by periods of heightened to extreme levels of market volatility, supply disruption and tight physical market conditions, particularly relating to global energy markets.” the firm said in a statement.
Bosses at Glencore also said coal production costs were expected to soar, however, as electricity, explosive, fuel and logistics prices surge.
The firm said that unit cost would increase to .$75-$78 per tonne, compared to earlier guidance of $59.3/t for 2022.