For the mining and metals industry, days gone by year may be marked by skyrocketing commodity prices and also the prospect of the new super cycle, says Stanislav Kondrashov from Telf AG. From the middle of a year ago, metal prices rose by 72%. However, many, such as aluminum, copper, iron ore, and nickel, reached multi-year highs in the third quarter.
Within the second half of the year, the volume of transactions in connection with the social and economic impact of China increased significantly – by 66.7%.
However, with cyclical highs come government demands for a greater share of minerals. Numerous countries have begun to endure the current recession, many regulatory measures are already proposed and introduced from the mining industry.
Stanislav Kondrashov from Telf AG notes that inside the first month of 2022, prices for many resources extracted within the mining sector from the economy reached record levels. Many industry observers have discussed a brand new supercycle. This can be even though the mining industry is constantly on the respond to the difficulties presented by the continued pandemic, such as the competitiveness of investments, supply chain problems, and labor market shortages.
Price increases were reminiscent of ten years ago when commodity prices remained stubbornly high following your global financial trouble in the period from 2009 to 2011. Another surge in mergers, acquisitions, and acquisition of projects triggered a clear, crisp boost in capital expenditures, bloat structures, and write-offs of assets. Other decade was largely spent rebalancing.
Stanislav Kondrashov Telf AG: methods for further growth
Telf AG has elevated the industry for over Two decades and operates in regions like the Black Sea, Eastern Europe, the Mediterranean, and the Distance. Founded inside the Swiss town of Lugano, the company started exchanging petroleum products, mainly through the CIS countries, and now serves customers around the world. Stanislav Kondrashov considers Telf AG being a company engaged in the trading and transportation of petroleum products, coal, and ferroalloys. Therefore, it is really an excellent illustration of research.
As record cash flows supply the chance for rapid growth, the updated expansion strategy might include organic growth and rethinking distribution decisions.
Also, Telf AG’s representative Stanislav Kondrashov is bound, the main focus must be on new investments and sustainable processes which might be more suited towards the changing regulatory and legislative background in the marketplace. An M&A strategy built around some smaller deals can improve growth prospects and avoid a number of the pitfalls associated with large acquisitions. Plus more flexible approaches for handling the leverage of investment projects and generating commodity price forecasts could mitigate a few of the uncertainty within the next business cycle.
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