|Bid||244.70 x 0|
|Ask||244.85 x 0|
|Day's Range||243.03 - 245.95|
|52 Week Range||188.23 - 2,334.50|
|Beta (5Y Monthly)||1.57|
|PE Ratio (TTM)||39.48|
|Earnings Date||Feb 18, 2020|
|Forward Dividend & Yield||0.16 (6.71%)|
|Ex-Dividend Date||Sep 05, 2019|
|1y Target Est||4.95|
(Bloomberg) -- Glencore Plc is negotiating a long-term contract to ship cobalt to Tesla Inc.’s new electric-vehicle factory in Shanghai, according to people familiar with the matter.A deal would help Tesla avoid a supply squeeze on the key battery metal as it pushes into the world’s largest car market, and mark a win for Glencore after a tough spell for its cobalt business.Executives from both companies hammered out terms of the deal before an official ceremony to mark the first sales from the Shanghai plant earlier this month, said one of the people, who asked not to be identified discussing commercial negotiations. They declined to give details about the size and value of the supply deal.A Glencore spokesman declined to comment, while a representative for Tesla didn’t immediately respond to a request for comment.The contract will help Tesla shore up its cobalt supply as it ramps up output at the so-called Gigafactory, which was built in just 11 months with significant support from the Chinese government. The opening of the plant has helped propel Tesla’s shares to record highs, as investors turn bullish on Elon Musk’s ambitions of transforming the company into a global mass-market automaker.While there is enough cobalt supply for now, demand is expected to surge in the coming years as Tesla expands in China and Europe and Volkswagen AG to BMW AG roll out fleets of electric vehicles. Warnings about long-term shortages caused cobalt prices to spike in 2017 and 2018, prompting Musk to work on reducing Tesla’s reliance on the metal. Even so, the deal signals that the metal will remain key to the company’s expansion over the next few years.Despite a torrid year for the car industry, the burgeoning electric-vehicle market offers big opportunities for manufacturers and the companies that supply them. The biggest miners are looking to grow production of metals such as copper and nickel that are needed for the electrification of cities and cars.Glencore, the world’s largest cobalt miner, is in a prime position to benefit from a boom in electric-vehicle sales. But so far, it’s struggled to make that happen. The company booked losses last year related to cobalt after prices collapsed in mid-2018 from too much supply.Read more: Cobalt’s Star Fades for Glencore Traders as Customers RenegeAfter customers reneged on contracts in response to the slump, Glencore spent last year locking in new long-term deals with customers throughout the electric-vehicle supply chain. BMW has signed up to buy cobalt from its mines in Australia, while battery materials suppliers GEM Co. and Umicore SA have also inked contracts.Direct deals with miners are rare in the automotive industry, and the agreements between Glencore, Tesla and BMW are a sign carmakers are concerned about securing sufficient cobalt from ethical sources. Nearly three-quarters of the world’s cobalt comes from the Democratic Republic of Congo, and as much of 20% of the country’s output is produced at informal makeshift mines where fatalities and human-rights abuses are commonplace.A lack of liquidity in exchange-traded cobalt contracts also means buyers have little opportunity to hedge against wild price swings. As a result, the industry is moving toward long-term strategic tie-ups to allow battery-chemical makers and cell manufacturers to pass along price risks as cobalt moves through their supply chain, according to George Heppel, an analyst at CRU Group.“You have to be able to pass on those costs,” Heppel said by phone. “It would be impossible for a battery manufacturer to sign a long-term deal with a customer without some clause to vary their prices based on raw material costs.”(Updates with background on cobalt from sixth paragraph.)\--With assistance from Christoph Rauwald.To contact the reporters on this story: Mark Burton in London at firstname.lastname@example.org;Thomas Biesheuvel in London at email@example.comTo contact the editors responsible for this story: Lynn Thomasson at firstname.lastname@example.org, Nicholas Larkin, Dylan GriffithsFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Tesla reportedly is teaming with metals giant Glencore to ship cobalt to Tesla's new Shanghai electric-vehicle factory to avoid a supply squeeze on the key battery metal.
Tesla is in talks to buy supplies of the battery metal cobalt from Glencore for its new factory in Shanghai, according to people familiar with the matter. The deal is the latest sign that carmakers and battery producers are increasingly keen to secure long-term supplies of cobalt, a metal used in lithium-ion batteries that is mostly mined in the Democratic Republic of Congo. Tesla is looking to secure supplies of the metal for its Shanghai factory, which opened this month after a year of construction, the person said.
(Bloomberg) -- BlackRock Inc. will cut exposure to thermal coal as the world’s largest asset manager moves to address climate change, but that doesn’t mean it’s selling out of the biggest producers -- including top shipper Glencore Plc.Producers of the dirtiest fuel are coming under increasing pressure from money managers to either abandon the business or show plans for an eventual exit. What investors don’t agree on, is how to measure progress and whether companies are complying.BlackRock’s discretionary active investment portfolios will sell out of all companies that get more than 25% of sales from thermal coal, Chief Executive Officer Larry Fink wrote in a letter to clients that outlined a plan to put climate considerations at the center of its strategy. There isn’t a long-term economic or investment rationale for continuing to invest in the fuel, he said.Read more: BlackRock Puts Climate at Center of $7 Trillion StrategyHowever, the revenue threshold means that large, diversified miners -- which also rank among the largest coal producers -- won’t be affected. Glencore, of which BlackRock owns 6%, is the single biggest coal shipper, mining about 130 million tons last year. Yet its thermal coal revenues accounted for less than 10% of the total, thanks to the contribution from its giant trading operations.Major coal producers Anglo American Plc and BHP Group also comfortably escape the cap.Blackrock’s approach contrasts with Norway’s $1 trillion sovereign wealth fund, which said last year it would stop investing in companies that mine more than 20 million tons a year of thermal coal. Glencore, Anglo and BHP all fall foul of that requirement.The pressure on mining companies is showing results. BHP is looking at options to exit its remaining coal mines in Colombia and Australia, while Anglo is also looking to retreat. Even Glencore, an ardent defender of the fuel, has said it will limit its output after pressure from Climate Action 100+, a group BlackRock has now joined.Still, many argue that targeting coal suppliers will have limited effect because western companies will simply sell their mines to others who will continue to operate them for years as long as demand holds up.Last year, Glencore’s billionaire CEO, Ivan Glasenberg, said coal had an essential role in providing affordable and reliable power in developing countries. If environmentalists keep pressuring companies to stop producing coal, there won’t be enough for the economies that need it, he saidTo contact the reporter on this story: Thomas Biesheuvel in London at email@example.comTo contact the editors responsible for this story: Lynn Thomasson at firstname.lastname@example.org, Liezel Hill, Dylan GriffithsFor more articles like this, please visit us at bloomberg.com©2020 Bloomberg L.P.
First, the privately-owned company has been implicated in a long-running bribery scandal in Brazil, alongside a host of other oil traders and shippers, at a time when the once secretive world of commodity trading is already coming under increasing regulatory scrutiny. “For the company to do well, we have to hire the best people and have the right mix of players on the field,” Mr Hardy said.
Moody's America Latina ("Moody's") today assigned a Ba1/Aaa.br Corporate Family Rating to Petrobras Distribuidora S.A. ("BR"). The outlook for the ratings is stable. BR ratings mainly reflect its market position as the largest fuel distributor in Brazil in terms of volumes sold, gas stations network and distribution logistics assets, along with its well-known brand names and adequate credit metrics.
Copper ended last year with a bang on rising US-China trade deal hopes, breaking out of the narrow trading range it held since the summer, and has continued its momentum into the opening days of 2020. The metal, seen by many investors as a proxy for the global economy, hit a seven-month high above $6,100 a tonne in mid-December after reports that the US and China were closing in on a limited trade deal. Mr Meir added that China consumed roughly half of the world’s copper, meaning it would be at the forefront of industrial metals that stand to benefit from a pick-up in global economic activity.
European stocks started the New Year with a rally on Thursday as trade optimism continued and China’s central bank gave markets a boost.
British stocks began the new year with a bang on Thursday but the pound slipped as 2020 started with the same old Brexit fears.
(Bloomberg) -- The boom in liquefied natural gas is sending a clear signal that the fastest growing fossil fuel is no longer a sideshow for the biggest energy and commodity traders. At the same time, some utilities are exiting.Gunvor Group Ltd., the biggest independent trader of LNG, as well as Trafigura Group Pte Ltd. and Glencore Plc, all reported soaring volumes this year as they continue to diversify away from the pure oil trading that turned them into money machines bigger than some national economies.The firms are turning to natural gas, the cleanest fossil fuel, at a time when the focus on pollution and global warming is bigger than ever. New supplies from the U.S. to Russia and Australia sent prices to seasonal record lows, attracting new consumers. Contracts with more flexible terms and a nascent financial market are also boosting activity.“The increased activity from the trading houses demonstrates their long-term commitment to LNG,” Alex Lee, managing director at Connexus Global, a recruiter in Singapore, said by email. “They are determined to cement their position and drive the industry as it becomes more commoditized.”As a result, there’s been several deals over the past few months.And while trading companies expand from London to Singapore and beyond, some European utilities are leaving. Spain’s Iberdrola SA is getting out and Naturgy Energy Group SA may soon follow. Denmark’s Orsted A/S, which has transformed itself from an oil and gas company to the world’s biggest offshore wind producer, said on Wednesday it will sell its LNG activities to Glencore.The trading companies know better than most how to navigate the logistical challenges in a market where more than 500 tankers crisscross the oceans and sometimes change route to higher-priced destinations. That’s far from how the industry started about five decades ago with long-term contracts between producers and consumers.While most of commodity traders set up desks years ago to build the business for when the U.S. exports boom started in 2016, some companies such as Mercuria Energy Group Ltd. are just starting and “may grow rapidly as they seek to make an impact,” Lee said.“I would like to see more players come in as well, more independent players,” said Nathan Arentz, director of natural gas and LNG at Glencore. “Now is the time, this market looks very much like the oil market 20 to 30 years ago.”The trading companies expanded even as an almost 40% slump in the benchmark Asian price over the past year cut arbitrage opportunities between regions. Instead, they had to come up with new ways of making money that include cargo swaps, holding back on deliveries and trading oil-linked cargoes against spot tankers.China remained a key market even if purchases slowed from the previous couple of years. India, a price-sensitive buyer that switches from coal to gas when prices fall, has to some extent compensated for the drop in demand from China, the world’s biggest energy consumer.India was the biggest market for Gunvor this year, while Glencore also attributed its growth this year to a focus on south Asian nation. The world’s largest publicly listed commodity merchant was also the biggest spot trader in China. For Trafigura, more buyers lured by cheap LNG and the evolution toward shorter and more flexible contracts drove performance.As regional price differentials vanished, northwest Europe has been soaking up a lot more cargoes than usual. Imports will probably jump 70% to 82.5 million tons this year, according to Wood Mackenzie Ltd. That’s as much as biggest LNG importer Japan bought last year.While the independent traders are quickly seizing opportunities, they are still far behind some oil majors, including Royal Dutch Shell Plc, which sold 54 million tons in the first nine months of the year. Rosneft PJSC, Russia’s biggest oil producer, has so far been on the sidelines, but is planning to start a Geneva trading desk in the new year.“There are several participants actively looking to grow their international trading activities, and a quick way to achieve this is through M&A deals,” Lee said. “We anticipate more of such deals to come. Over the next two years we will see who is committed and who does not see LNG as a core activity.”(Updates with Glencore comment in ninth paragraph.)To contact the reporter on this story: Anna Shiryaevskaya in London at email@example.comTo contact the editors responsible for this story: Reed Landberg at firstname.lastname@example.org, Lars Paulsson, Andrew ReiersonFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
A new lawsuit accuses several of the world’s largest technology firms of knowingly profiting from children laboring under brutal conditions in African cobalt mines.
Trafigura Group, the global commodity trader, increased its annual liquefied natural gas (LNG) trading volumes by 27%, driven by trade flows and the start of new contracts, the company said on Wednesday. Volumes rose to 12.6 million metric tonnes equivalent this year, which included the start of shipments under the company's 15-year agreement to lift supply from Cheniere Energy as well as several other mid-term contracts, Trafigura said in its annual report. "With weak demand in Asia redirecting trade flows, the European market absorbed the bulk of our Atlantic cargoes, often in conjunction with our natural gas desk, while we continued to build our position in the Far East with regionally sourced LNG," the company said.
Moody's Investors Service ("Moody's") has completed a periodic review of the ratings of Glencore plc and other ratings that are associated with the same analytical unit. The review was conducted through a portfolio review in which Moody's reassessed the appropriateness of the ratings in the context of the relevant principal methodology(ies), recent developments, and a comparison of the financial and operating profile to similarly rated peers. This publication does not announce a credit rating action and is not an indication of whether or not a credit rating action is likely in the near future.
Warehousing firm ISTIM UK held 35% of total aluminium stocks in London Metal Exchange-registered warehouses in its Malaysian facilities by the end of November, data from the LME showed on Tuesday. Aluminium stocks in ISTIM's Port Klang and Johor warehouses rose 213,275 tonnes in November from the previous month to 476,846 tonnes, according to the data. The business model of ISTIM, controlled by the Whelan family who founded major warehousing company Metro, is based on queues to take material out of warehouses and earning rent from storage.
Spot liquefied natural gas (LNG) volumes traded by Glencore in 2019 have increased by more than 75% from last year, with the company ramping up its Asian presence, Nathan Arentz, Glencore's head of gas trading, told the CWC LNG conference in Rome. Once viewed as dull owing to its decades-long deals dominated by western energy giants and state firms, the LNG market has became a hot ticket over the last few years as a spot market emerged with demand growth in emerging Asian markets. Major trading firms have steadily built up a significant presence in LNG although Glencore had lagged far behind Gunvor, Vitol and Trafigura.