Prices for iron ore, copper, nickel, aluminum and other metals have been in a multiyear slump amid sluggish growth in advanced economies and weakening expansion in emerging markets.
Drop in mineral prices on world markets has made Glencore cut 500 thousand tons of zinc production which is equivalent to 4 percent of total global output of the metal.A move that caused copper prices to rise by about 10 percent.
While miners are holding off on new projects and looking to slow the completion of ones in the works as they face the worst commodity price collapse since 2008, research house Wood Mackenzie warns the industry could be paving the way for a major supply shortage.
A survey of 400 metals and mining investors polled by Macquarie at the London summit returned a moderately bullish view of the next 12 months for base metals.