Glencore Plc’s decision to chop back zinc output will probably help to swing the global market into a deficit, according to a unit of Vedanta Resources Plc that’s preparing to boost production and take advantage of the shortfall and rising prices.
“With Glencore announcing a 500,000-ton cutback, and closure of Century and Lisheen mines this year, this will take out nearly 1 million tons of metal from the market,” Sunil Duggal, chief executive officer of Hindustan Zinc Ltd., said on Tuesday. “That’s 7 percent of global mine supplies. This could potentially convert a surplus market into a deficit.”
