COMMENT: Iron ore offers hope for Glencore

Glencore’s iron ore marketing business has increased tenfold since its launch in 2008 to 9.3 million tonnes in 2010, up from 900,000 million tonnes.

Glencore’s iron ore marketing business has increased tenfold since its launch in 2008 to 9.3 million tonnes in 2010, up from 900,000 million tonnes.

While the Swiss commodity trader’s share of the global iron ore marketing business grew, the global arena for the steelmaking raw material underwent the largest change in its history as pricing contracts shortened from long-established annual terms to quarterly and even monthly agreements.

The move from iron ore benchmark prices to index-based pricing has facilitated Glencore’s growth in the market, ceo Ivan Glasenberg told reporters last week as the company reported its first-results.

Since its entrance into the iron ore market, Glencore has grown to compete with other major third-party traders including trader Cargill and investment banks Credit Suisse, Deutsche Bank and Standard Bank.

After a disappointing week for post-IPO Glencore, which saw lower-than-expected first-quarter 2011 results and a drop in its share price, the trading house will be hoping that the market starts to focus on its plans in areas like iron ore.

What to read next
Fastmarkets proposes to extend the shipment window of its alumina index inferred, fob Brazil, to allow for greater inclusion of reported liquidity, and to increase the frequency of publication to weekly.
Following a month-long consultation period, Fastmarkets has amended the methodology for the bi-weekly assessment of the aluminium P1020A main Japanese ports (MJP) spot premium, to include domestic tenders and deals from the Japanese market.
Fastmarkets proposes to discontinue its ferrous scrap consumer buying price for cast iron borings in Pittsburgh due to a lack of liquidity.
Fastmarkets is proposing a realignment of its consumer buying price for ferrous scrap No1 busheling in Cincinnati and Pittsburgh, effective from the May 2023 monthly settlement.
A drive by electric vehicle (EV) manufacturers to improve the affordability of their cars may upend an expectation by some market observers that future EV dominance of automotive production will sharply reduce demand for special bar quality (SBQ) steel
The publication of Fastmarkets’ US rebar prices took place earlier than scheduled on Wednesday March 22 due to a reviewer error.
We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
Proceed