Glencore says share price fall down to rivals creating metals glut

LONDON, May 7 (Reuters) - The head of global mining and trading company Glencore (Xetra: A1JAGV - news) said on Thursday that the weak performance of its share price in the past year was due to an oversupply of metals created by its rivals which led to a plunge in prices.

Despite a partial recovery in the last few months, Glencore's share price is still down about 6 percent from a year ago, under pressure from a rout in prices for most of the commodities it producers and trades.

In reply to a question from a shareholder, asking why the share prices had fallen, Glencore Chief Executive Ivan Glasenberg said it was down to uncontrollable factors such as the decline in prices.

"Unfortunately our competitors in the world have produced more supply than demand and commodity prices are down for that reason," Glasenberg said at the company's annual shareholders meeting. "I am doing my level best to convince my competitors that we should understand the world's demand and supply."

Glasenberg has criticised rivals such as Rio Tinto (Xetra: 855018 - news) and BHP Billiton at various times, blaming them for oversupplying the market, particularly in iron ore, a commodity Glencore has little exposure to.

Asked whether share prices will go back to where they were at the time commodity trader and Glencore founder Marc Rich was in charge, Glasenberg pointed out the company was not listed at the time so a comparison would not be possible.

He added, however: "Had Mr Rich been around I have no doubt the share price would have performed very well."

Glasenberg said he was optimistic about the outlook for its key products: copper, nickel and zinc, which he sees moving into a deficit.

Coal, another main commodity for Glencore, also "looks good going forward", Glasenberg said, as Indonesia exports taper off with the country consuming more coal domestically. Coal prices have been battered by a large supply overhang in the last couple of years. (Reporting by Silvia Antonioli; Editing by Pravin Char)