Glencore copper output cut not a panacea for prices

Mon Sep 7, 2015 8:56am EDT
 
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* Glencore shares vs copper: link.reuters.com/tut55w

* Copper may be moving towards balanced market

* Mine supply also underperforming

* Glencore move follows Freeport

By Pratima Desai

LONDON, Sept 7 (Reuters) - Glencore's move to slash copper output will help shore up prices, but significant gains are unlikely because supplies are still adequate and growth in demand is weak, particularly from top consumer China.

The London-listed mining giant said it plans to suspend 400,000 tonnes of copper output at its Katanga Mining unit in Democratic Republic of Congo and at Mopani Copper Mines in Zambia over the next 18 months.

"It's probably not enough to see prices go up, but it certainly supports the market," said Grant Sporre, head of metals research at Deutsche Bank.

"It also ensures that copper is probably not going to fall in the same way that iron ore and met coal have done."   Continued...