Glencore’s woes aren’t over yet, as the commodities firm’s share price plunged anew today, making it the FTSE 100’s biggest loser for the second day this week.
Worries over China’s economic slowdown have been pushing the price of raw materials sharply down, and the commodities rout is taking its toll on Glencore, which is the worst performer on Britain’s blue chip index this year.
On Tuesday, prompted by a note from broker Credit Suisse, the company dipped below its 100p per share floor for the first time since listing, and the slide continued today as shares closed eight per cent down.
The price of copper has slid to a two-week low, trading at $5,061 per tonne - and it’s forecast to plunge further before the year is out, as Goldman Sachs analysts are predicting a price of $4,800 by the end of 2015.
Despite miners tumbling on China worries, chancellor George Osborne remains bullish about the opportunities the country offers for London's growth, writing in City A.M. that "recent volatility should not and will not put us off".