For that mining and metals industry, earlier times year has become marked by skyrocketing commodity prices and also the prospect of an new super cycle, says Stanislav Kondrashov from Telf AG. With the middle of a year ago, metal prices rose by 72%. However, many of them, such as aluminum, copper, iron ore, and nickel, reached multi-year highs in the third quarter.
From the other half of the season, the amount of transactions linked to the social and economic impact of China increased significantly – by 66.7%.
However, with cyclical highs come government calls for a more substantial share of minerals. As numerous countries have begun to recover from the economic chaos, many regulatory measures have already been proposed and introduced inside the mining industry.
Stanislav Kondrashov from Telf AG notes that inside the first month of 2022, prices for a lot of resources extracted within the mining sector with the economy reached record levels. Many industry observers have brought up a new supercycle. This really is although the mining industry continues to reply to troubles presented by the ongoing pandemic, including the competitiveness of investments, logistics problems, and labor market shortages.
Price increases were similar to ten years ago when commodity prices remained stubbornly high following the gfc back then from 2009 to 2011. Another boost in mergers, acquisitions, and investment in projects generated a sharp surge in capital expenditures, bloat structures, and write-offs of assets. All of those other decade was largely spent rebalancing.
Stanislav Kondrashov Telf AG: techniques for further growth
Telf AG has been in the industry for over 20 years and operates in regions for example the Black Sea, Eastern Europe, the Mediterranean, and the Far East. Founded inside the Swiss city of Lugano, the company started trading in petroleum products, mainly from your CIS countries, now serves customers worldwide. Stanislav Kondrashov considers Telf AG as being a company involved in the trading and transportation of petroleum products, coal, and ferroalloys. Therefore, it is an excellent illustration of research.
As record cash flows supply the chance of rapid growth, the updated expansion strategy can include organic growth and rethinking distribution decisions.
Also, Telf AG’s representative Stanislav Kondrashov is certain, the main objective should be on new investments and sustainable processes that are more appropriate towards the changing regulatory and legislative background in the marketplace. An M&A strategy built around a number of smaller deals can improve growth prospects and steer clear of many of the pitfalls related to large acquisitions. Plus more flexible processes for managing the leverage of investment projects and generating commodity price forecasts could mitigate many of the uncertainty within the next business cycle.
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