Glencore jumps to 15-month high as coal prices extend surge
LONDON – Glencore jumped to a 15-month high in London as coal prices rose and a Japanese steelmaker was said to agree to pay the most for coking coal in four years.
Glencore advanced 6.4% to close at 236.2p, the highest since July 21, 2015. The shares rose the most in the FTSE 100 Index. Prices have more than doubled this year, rebounding from a record low of 68.62p reached a year ago.
The company, which is cutting its $26 billion debt load, has benefited from this year’s surge in coal, said Kieron Hodgson, a London-based mining analyst at Panmure Gordon. Glencore, the world’s top exporter of power station coal, said this week it plans to reopen a coal mine in Australia.
The price of thermal coal from Australia’s Newcastle port, a benchmark for Asia, has risen 62% this year and is trading near its highest since January 2014. Glencore said yesterday it was planning to restart its Collinsville mine in Australia because of higher demand for the product in Southeast Asia.
Glencore also producers coking coal on a smaller scale. Nippon Steel & Sumitomo Metal agreed to pay Peabody Energy $200 a metric ton during the fourth quarter, said people with knowledge of the situation, who asked not to be identified as the information isn’t public.
It’s the highest contracted price since 2012 and compares with $92.50 in the third quarter. The settlement typically sets the benchmark for the region.
A spokesman for Glencore declined to comment.
Comments
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation