Ivan Glasenberg, the billionaire head of Glencore Plc, said copper prices should rise as more companies cut back mine production.
Glasenberg said at a conference in London on Monday that inventories of the metal will decline and supplies will eventually tighten. China will need more commodities and there’s no reason to keep mining copper if it isn’t profitable, he said.
Glencore has said it will close copper mines in the Democratic Republic of Congo and Zambia that account for about 2 percent of global supply. The metal is trading near a six-year low and has slumped 18 percent this year on concern a slowdown in top user China is eroding demand.
Glencore shares rose 8.1 percent to 102.7 pence by 11:21 a.m. in London, after earlier surging as much as 20 percent.