Glencore plays down dip in commodities as 'froth'

Glencore chief executive Ivan Glasenberg yesterday said recent falls in commodity prices were due to "froth" in the market and had not affected strong demand for the company's bumper flotation.

The world's largest diversified commodities trader last week unveiled the much-anticipated prospectus for the initial public offering (IPO), detailing plans to raise funds in a dual listing in Hong Kong and London. The two-part, three-inch thick prospectus totals 1,908 pages.

Commodity price volatility since last week has prompted market worries over Glencore's planned IPO, set to be London's largest ever, with fund managers last week sensing an opportunity to drive down the price.

Glasenberg said the decline in commodity prices was "due to some froth" in the market and had not affected demand for the IPO.

"We've had strong demand, I don't think we can say much more than that," Glasenberg said. "We haven't seen much pullback with the recent drop in commodity prices."