This, he said, half in jest, was a result of management bonus structures and consultants’ urgings to them to keep producing, to put their competitors under pressure and move down the cost curve.
His questions were simple.
Why has metal production yet to respond to a cyclical surplus and consequent low prices in the way it should?
Nobody wants to stop producing, he acknowledged. Everybody wants their competitors to stop. And everybody wants to make money. So who has the discipline to halt production?
This week, following discussions with shareholders, Glencore ceo Ivan Glasenberg took a big step, removing a total of 400,000 tonnes from the 20 million tonne per year copper market with cuts at...