Rio Tinto and Glencore spoke for months about deal that was once taboo
The news of Glencore and Rio’s discussions “has turned up the temperature on an already simmering M&A environment,” RBC Capital Markets analyst says.
Hopes of a sustained recovery in Chilean copper shipments are fading after the biggest-producing nation saw July exports come in at the lowest level since January.
Revenue from shipments last month slumped 13% from June levels, despite slightly higher prices for the metal. That suggests Chilean operations continue to endure project delays and mine-specific setbacks that have restrained production for the past year and a half.
Weaker supply out of Chile — a country that accounts for a quarter of global production — also helps explain why Chinese inventories are nearing critically low levels.
(By James Attwood)
Comments