Glencore PLC (LSE:GLEN) shares slid 5% in early trading on Monday, caught in the broad sell-off following President Trump’s sweeping tariffs that have sparked fears of a global recession.
While Glencore is one of the world’s most diversified miners, it also runs one of the largest commodity trading businesses globally - a model heavily exposed to price swings and market activity.
A sharp downturn in global demand, particularly from major economies like China, threatens both sides of Glencore’s business.
Lower prices for metals and energy reduce profits from its mining operations, while the trading arm could suffer from weaker volumes and tighter margins if economic activity slows.
The company’s exposure to copper, coal, and oil, all of which have come under pressure in recent days, leaves it vulnerable to a prolonged downturn.
As recession fears grow and trade routes come under strain, Glencore may find the global market volatility it usually profits from working against it.
The stock was off 10.95p at 225.95p.