Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.

Glencore shares continue to fall despite commodities boom

Glencore, the metal mining giant that has seen its share price surge by 80% this year, experienced a sharp fall as markets opened on 9 June, continuing a bearish week for mining stocks. Where next for the Glencore share price?

  • The Glencore share price fell 1.19% to 318p as London markets opened on 9 June
  • Glencore's share price has risen more than 80% in the past year
  • A commodities boom has helped raise the prices of metal mining stocks
  • Failure to meet surging demand could weaken Glencore's outlook
  • Ready to trade the Glencore share price? Open an account today

Why are Glencore shares dropping this week?

Glencore PLC, the Anglo-Swiss metal mining company responsible for the productions of most of the world's zinc and copper, has continued its recent losing streak on the stock market. When markets opened on 9 June, the Glencore share price fell by near-2% to 318p at its lowest, following a week of consistently falling prices.

This all comes amid a global commodities boom that has seen demand for the products and goods sold by Glencore PLC skyrocket, as economies and manufacturing roar back to life in the US and China. The surging demand for commodities such as metals has helped to push the price of copper and zinc to near-record levels, helping to lift Glencore's profits following years of low metal prices.

This boom has been responsible for the mining company's bullish year, which has seen the Glencore share price grow a staggering 80% in just 12 months. So, why have Glencore shares been faltering? One major concern is inflation, which may push prices of commodities such as copper and zinc extremely high. Also, fears are mounting that mining giants may not be able to meet growing demand, potentially causing a bottleneck that could have implications for the broader global economy.

What are the future prospects for the Glencore share price?

The future of the company share price depends largely on the future of metal prices. The decline in Glencore's share price began last week on 3 June, when copper prices fell below $10,000 for the first time in a month, and gold prices saw some of the biggest drops all year.

If prices continue to fall, Glencore's revenues will likely see a significant contraction. However, the company is clearly feeling optimistic about the future of its operations. On 8 June, Glencore announced plans to conduct a feasibility study into further expanding operations at Kidd Mine, already the world's deepest base metal mine.

Meanwhile, this morning, 9 June, revealed that Glencore has invested heavily into eco-friendly mining operations in Australia, with the rollout of battery-powered electric loaders. Furthermore, in its recent FY report, Glencore reinstated the dividend and told shareholders that its 2021 revenues would be at the upper end of their $2.2-3.2 billion guidance range, signalling a brighter future ahead.

Will the Glencore share price rally once again? Trade Glencore shares today

Take your position on UK shares for just a small initial deposit with spread bets or CFDs. Spread bets are completely tax-free, while CFDs are free from stamp duty.1 You can also buy and take ownership of UK shares for just £3 with us.2

Open an account to start trading or investing in UK shares.

1 Tax laws are subject to change and depend on individual circumstances. Tax law may differ in a jurisdiction other than the UK.

2 Deal three times or more in the previous month to qualify for our best rate.

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

Act on share opportunities today

Go long or short on thousands of international stocks with spread bets and CFDs.

  • Get full exposure for a comparatively small deposit
  • Trade on spreads from just 0.1%
  • Get greater order book visibility with direct market access

See opportunity on a stock?

Try a risk-free trade in your demo account, and see whether you’re on to something.

  • Log in to your demo
  • Take your position
  • See whether your hunch pays off

See opportunity on a stock?

Don’t miss your chance – upgrade to a live account to take advantage.

  • Trade a huge range of popular stocks
  • Analyse and deal seamlessly on fast, intuitive charts
  • See and react to breaking news in-platform

See opportunity on a stock?

Don’t miss your chance. Log in to take advantage while conditions prevail.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices
liveprices.javascriptrequired
liveprices.javascriptrequired
liveprices.javascriptrequired

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Plan your trading week

Get the week’s market-moving news sent directly to your inbox every Sunday. The Week Ahead gives you a full calendar of upcoming economic events, as well as commentary from our expert analysts on the key markets to watch.


For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of spread betting and CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.