Glencore's trading division is now expected to achieve a profit between $3 billion and $3.5 billion for the fiscal year

On Tuesday, Glencore announced that it anticipates profit from its trading division for this year to be at the upper end of its long-term annual guidance. This projection comes amid an environment of elevated interest rates and high commodity prices.

The mining and trading company anticipates full-year marketing earnings before interest and tax (EBIT) to fall within the range of $3 billion to $3.5 billion. This forecast aligns with the upper end of the firm's long-term projected range of $2.2 billion to $3.2 billion.

Nevertheless, the company maintained its full-year production forecast unchanged. In the first quarter, Glencore disclosed a total copper production of approximately 239,700 metric tons, marking a 2% decrease compared to the previous year, but a 2% increase on a year-on-year basis.

Analysts anticipate a significant shortage in the copper market this year, fueled by rising copper consumption as certain economies transition to renewable energy. Copper remains crucial for the development of electric vehicles, artificial intelligence, and automation.

Copper prices surged this week following reports of miner BHP's potential bid for Anglo American.

Glencore's primary competitor, BHP, is contemplating an improved offer for Anglo American after its initial $39 billion proposal was turned down. Much attention has been directed towards copper in BHP's bid, and a merger with Anglo would create a conglomerate accounting for approximately 10% of global copper output.

Glencore noted a 37% decline in the production of cobalt, a key material in electric vehicle manufacturing, while nickel production rose by 14%.