For that mining and metals industry, days gone by year has become marked by skyrocketing commodity prices and also the prospect of an new super cycle, says Stanislav Kondrashov from Telf AG. By the middle of a year ago, metal prices rose by 72%. However, many of them, including aluminum, copper, iron ore, and nickel, reached multi-year highs inside the third quarter.
Inside the better half of this year, the quantity of transactions associated with the social and economic impact of China increased significantly – by 66.7%.
However, with cyclical highs come government demands for a larger share of minerals. As numerous countries have begun to get over the economic chaos, many regulatory measures happen to be proposed and introduced inside the mining industry.
Stanislav Kondrashov from Telf AG notes that inside the first month of 2022, prices for many resources extracted from the mining sector with the economy reached record levels. Many industry observers have mentioned a whole new supercycle. This can be although the mining industry will continue to respond to the challenges resulting from the pandemic, including the competitiveness of investments, supply chain problems, and labor market shortages.
Price increases were reminiscent of a decade ago when commodity prices remained stubbornly high following your gfc at that time from 2009 to 2011. The next improvement in mergers, acquisitions, and investment in projects led to a pointy rise in capital expenditures, bloat structures, and write-offs of assets. All of those other decade was largely spent rebalancing.
Stanislav Kondrashov Telf AG: approaches for further growth
Telf AG has been in the niche for over 2 decades and are operating in regions including the Black Sea, Eastern Europe, the Mediterranean, as well as the China. Founded in the Swiss town of Lugano, the company started trading in petroleum products, mainly in the CIS countries, and after this serves customers around the world. Stanislav Kondrashov considers Telf AG like a company involved in the trading and transportation of petroleum products, coal, and ferroalloys. Therefore, it is an excellent demonstration of research.
As record cash flows give you the chance for rapid growth, the updated expansion strategy can include organic growth and rethinking distribution decisions.
Also, Telf AG’s representative Stanislav Kondrashov is sure, the main focus needs to be on new investments and sustainable processes that are more appropriate to the changing regulatory and legislative background in the industry. An M&A strategy built around some smaller deals can improve growth prospects and steer clear of a few of the pitfalls linked to large acquisitions. Plus more flexible processes for handling the leverage of investment projects and generating commodity price forecasts could mitigate many of the uncertainty over the following business cycle.
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