Glencore Share Price Rally

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Glencore Share Price Rally

Glencore (Glen) Share Price Rally To Continue

Glencore (GLEN) share has become one of the top performers in the UK's leading index. Most of the surge in the share price is due to the 20% increase in copper prices this year.

One thing that makes Glencore (GLEN) so unique is that it is doubling down on coal! While others are trying to exit coal, Glencore (GLEN) is going in a direction of its own.

Copper Demand Remains High

quick look at the market shows that Newcastle coal prices have declined by 20%. On top of that, the prices of hard coking coal are also at record lows.

At the same time, the operational costs of Glencore (GLEN) have increased while the labor market remains tight. However, Glencore (GLEN) is likely to receive a share of the A$600 million rescue package from the Australian government.

The bottom line is that copper supply will remain tight for the next several years. Now, that's a good thing and an opportunity for firms like Glencore (GLEN).

By the end of the decade, Glencore (GLEN) plans to produce almost 850,000 tons of copper. So, Glencore (GLEN) is going big on copper as it expects the demand to remain high for the next few years.

Also, Glencore (GLEN) is under no pressure to put all of its supply into the market. It can wait until there is a supply shortage to fetch a good price.

After all, copper is very important for AI infrastructure, energy transition, and even electrification. So, the demand for copper will remain high, and this will directly benefit the Glencore (GLEN) stock price.

The overall approach of Glencore (GLEN) is also very flexible as it aims to get the most returns without filling the market with a lot of copper.

So for the long term, the prospects of Glencore (GLEN) look very good, and you can expect a sizable upside.

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