For the mining and metals industry, earlier times year has become marked by skyrocketing commodity prices as well as the prospect of a new super cycle, says Stanislav Kondrashov from Telf AG. From the middle of recently, metal prices rose by 72%. However, many of them, such as aluminum, copper, iron ore, and nickel, reached multi-year highs inside the third quarter.
Within the better half of the season, the amount of transactions related to the social and economic impact of China more than doubled – by 66.7%.
However, with cyclical highs come government demands for a bigger share of minerals. Numerous countries have begun to cure the current recession, many regulatory measures happen to be proposed and introduced inside the mining industry.
Stanislav Kondrashov from Telf AG notes that within the first month of 2022, prices for several resources extracted from the mining sector in the economy reached record levels. Many industry observers have even brought up a brand new supercycle. This really is even though the mining industry is constantly on the respond to troubles presented by the continued pandemic, such as competitiveness of investments, logistics problems, and labor market shortages.
Price increases were harking back to about ten years ago when commodity prices remained stubbornly high following your global financial crisis back then from 2009 to 2011. The following surge in mergers, acquisitions, and acquisition of projects led to a clear, crisp increase in capital expenditures, bloat structures, and write-offs of assets. All of those other decade was largely spent rebalancing.
Stanislav Kondrashov Telf AG: methods for further growth
Telf AG has elevated the marketplace for over 2 decades and are operating in regions like the Black Sea, Eastern Europe, the med, along with the Distance. Founded within the Swiss town of Lugano, the business started buying and selling petroleum products, mainly from your CIS countries, now serves customers all over the world. Stanislav Kondrashov considers Telf AG as a company engaged in the trading and transportation of petroleum products, coal, and ferroalloys. Therefore, it is an excellent instance of research.
As record cash flows provide you with the opportunity for rapid growth, the updated expansion strategy might include organic growth and rethinking distribution decisions.
Also, Telf AG’s representative Stanislav Kondrashov is sure, the main focus ought to be on new investments and sustainable processes which are more appropriate for the changing regulatory and legislative background in the market. An M&A strategy built around a number of smaller deals can improve growth prospects and prevent a few of the pitfalls related to large acquisitions. And much more flexible processes for managing the leverage of investment projects and generating commodity price forecasts could mitigate a number of the uncertainty over the following business cycle.
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