Glencore to Suspend 100,000 mt of Zinc Sulphide Production Line

SHANGHAI, Nov 23 (SMM) – Commodity giant Glencore plans to close an important production line in Italy for maintenance, showing the fragile state of the industrial product supply chain under the background of high energy prices. Glencore confirmed in an email statement on Monday that the company's zinc sulphide production line in the Portovesme industrial zone in Sardinia, Italy, will be suspended for maintenance by the end of next month. The planned production capacity of this production line is 100,000 mt/year. LME zinc rose more than 3% to $3,350/mt in a short time, setting a record high in the past month, due to this news.

Major energy-intensive companies, including steel and fertilisers, have successively suspended or reduced output since the prices of natural gas and energy soared. In October, news from major suppliers such as Glencore, Trafigura, and Nyrstar about the reduction in supply caused this industrial metal to rise by 13.7% in a single month. Supply disruptions have provided support for base industrial metal prices, offsetting concerns that the previous energy crisis will soon hit industrial demand. Glencore said it will continue to review the decision to stop production in the context of the European energy market.

In addition to zinc, base metals including LME Copper, LME Nickel, LME Aluminum, and LME Tin also rose simultaneously on Monday. Under the energy crisis, the uncertainty of the heavy industry supply chain will continue to boost commodity prices.