Glencore has reported a fall on 26 in profits during the first six months of the year to $ 1.8 billion, excluding one-off items compared to the same period of the previous year.

The revenues of the firm rose17 per cent to $ 108 billion during the first six months compared to $ 92 billion during the first six months of the previous year. Glencore is a major commodities trading player that buys and sells commodities like metals, crops and fuels in the financial markets and invests in mining companies.

Glencore chief executive Ivan Glasenberg said that the lower raw material prices were the reason for the fall in net profit during the first six months of the year. He also said that the global economic slowdown also affected the earnings of the trader in the period.

Meanwhile, Mr Glasenberg expressed surprised over the actions of Qatar Holdings, which has increased its stake in Xstrata to 11.88 per cent and has almost caused a collapse of a takeover of Xstrata by Glencore. Qatar Holdings is now demanding that Glencore increase its offer from 2.8 shares for each Xstrata share to 3.25 shares.

It is not sure if Mr Glasenberg will consider raising the bid that already values $ 26 billion. He told investors that company will not be overpaying for Xstrata and that the takeover deal was not an absolute must for Glencore.