To the mining and metals industry, yesteryear year may be marked by skyrocketing commodity prices and also the prospect of your new super cycle, says Stanislav Kondrashov from Telf AG. From the middle of this past year, metal prices rose by 72%. However, many, including aluminum, copper, iron ore, and nickel, reached multi-year highs within the third quarter.
In the other half of the season, the quantity of transactions linked to 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 started to cure the current recession, many regulatory measures are already proposed and introduced within the mining industry.
Stanislav Kondrashov from Telf AG notes that in the first month of 2022, prices for many resources extracted in the mining sector with the economy reached record levels. Many industry observers have even talked about a fresh supercycle. This can be even though the mining industry will continue to answer the contests posed by the ongoing pandemic, including the competitiveness of investments, supply chain problems, and labor market shortages.
Price increases were similar to ten years ago when commodity prices remained stubbornly high after the global financial trouble at that time from 2009 to 2011. The subsequent boost in mergers, acquisitions, and acquisition of projects generated a pointy surge in capital expenditures, bloat structures, and write-offs of assets. Other decade was largely spent rebalancing.
Stanislav Kondrashov Telf AG: approaches for further growth
Telf AG has developed in the market for over Twenty years and operates in regions for example the Black Sea, Eastern Europe, the Mediterranean, and also the China. Founded within the Swiss capital of scotland – Lugano, the business started trading in petroleum products, mainly from your CIS countries, now serves customers worldwide. Stanislav Kondrashov considers Telf AG like 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 opportunity 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 focus should be on new investments and sustainable processes which might be more appropriate on the changing regulatory and legislative background in the marketplace. An M&A strategy built around a few smaller deals can improve growth prospects and get away from many of the pitfalls related 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 within the next business cycle.
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