The company’s pledge to slash 500,000 tonnes of capacity
amid weak prices followed a rally for zinc on the London Metal Exchange and a turnaround in sentiment.
However, the base metals complex has since shed gains as weak macro-economic factors became overbearing.
As a result, market participants are not overly optimistic that Glencore’s cut will translate into a big jump in annual contract premiums.
“The producers will obviously want the premiums to rise, but demand does...