Glencore Q1 Cobalt and Copper Production Shows Divergent Trends in Volatile Market

Cobalt

Cobalt Output Soars While Copper and Nickel Face Steep Declines

Glencore Q1 cobalt and copper production revealed mixed results, highlighting the challenges of commodity volatility and mine-specific dynamics. The company’s cobalt output surged 44% year-on-year to 9,500 tonnes, driven by improved grades at its Mutanda mine in the DRC. In contrast, copper production dropped 30% to 167,900 tonnes due to lower grades and recovery rates at Chilean operations like Collahuasi and Antapaccay.

Zinc Rises, Nickel and Ferro-Chrome Falter

Meanwhile, nickel production fell 21% to 18,800 tonnes, largely due to the Koniambo mine transition in New Caledonia. On the positive side, zinc production rose 4% to 213,600 tonnes, supported by strong output from Antamina in Peru and Australian operations. Ferro-chrome production declined 7%, with Glencore citing market-driven management decisions and high energy costs in South Africa.

Cobalt Supply Tightness and Copper Recovery Outlook

The Q1 performance positions Glencore to benefit from tight cobalt supply, especially following the DRC’s export suspension that lifted China’s cobalt hydroxide prices. However, copper’s poor start may weigh on H1 earnings, though CEO Gary Nagle anticipates a rebound in output later in the year. Glencore maintained full-year guidance for all core metals, signaling confidence in operational recovery despite short-term setbacks.

The Metalnomist Commentary

The latest Glencore Q1 cobalt and copper production figures reflect a market caught between supply shocks and operational setbacks. While cobalt shows strength amid geopolitical friction, copper’s rebound will be crucial for sustaining Glencore’s broader portfolio performance in 2024.