Glasenberg blames oversupply for falling commodity prices

Glencore chief Ivan Glasenberg has once again hit out at miners for not understanding supply and demand.

The CEO has been critical of ramp ups in both iron ore and coal production, and said "external factors" had contributed to a decline in Glencore’s share price.

Speaking at the company’s annual general meeting in Switzerland, Glasenberg blamed falling commodity prices on overproduction by other mining houses, Business Spectator reported.

"Unfortunately our competitors in the world have produced more supply than demand and commodity prices are down for that reason," he said.

"I'm doing my level best to convince my competitors that we should understand demand and supply.”

Staying true to his word, Glasenberg decided to cut the company’s Australian coal production by 15 per cent or 15 million tonnes earlier this year.

“We don’t want to be the ones forcing the price down with oversupply,” he said at the time.

Speaking to a Glencore spokesperson at the time they said that this is part of Glasenberg's statements on the company's outlook, in which it is "not willing to cannabilise our revenues for volumes".

"We aren't going to push incremental tonnages."

This is not the first time Glasenberg has hit out at the strategy of other companies.

In February he stated that blame for the iron ore price fall should land squarely on the shoulders of major miners who have undertaken expansion projects.

“Prices are coming off because we see massive expansions coming there from our major competitors,” Glasenberg said.

The dig comes as Rio Tinto, BHP Billiton, and Fortescue Metals Group all added to their Pilbara iron ore production levels through multi-billion dollar brownfield expansions.

Last year Glasenberg stated the industry had been saturated with new mines that lead to a surplus in metals and shrinking profits.

“We've always been wanting to keep building and keep putting the cash which we generate into new assets. That's what we've got to stop doing as a mining industry. We've got to learn about demand and supply,” he said.

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