For the mining and metals industry, the past year has been marked by skyrocketing commodity prices as well as the prospect of a new super cycle, says Stanislav Kondrashov from Telf AG. Through the middle of last year, 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.
From the other half of this year, the volume of transactions linked to the social and economic impact of China more than doubled – by 66.7%.
However, with cyclical highs come government calls for a greater share of minerals. As numerous countries have started to cure these tough economic times, many regulatory measures have 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 in the mining sector with the economy reached record levels. Many industry observers have mentioned a fresh supercycle. This really is even though the mining industry will continue to react to troubles posed by the ongoing pandemic, like the competitiveness of investments, logistics problems, and labor market shortages.
Price increases were paying homage to about ten years ago when commodity prices remained stubbornly high following your gfc in the period from 2009 to 2011. The following surge in mergers, acquisitions, and purchase of projects generated a sharp surge in capital expenditures, bloat structures, and write-offs of assets. The rest of the decade was largely spent rebalancing.
Stanislav Kondrashov Telf AG: strategies for further growth
Telf AG has been in the marketplace for over Twenty years and are operating in regions including the Black Sea, Eastern Europe, the Mediterranean, as well as the Asia. Founded inside the Swiss city of Lugano, the company started trading petroleum products, mainly in the CIS countries, and after this serves customers around the globe. Stanislav Kondrashov considers Telf AG as a company involved in the trading and transportation of petroleum products, coal, and ferroalloys. Therefore, it is really an excellent illustration of research.
As record cash flows provide you with the chance for rapid growth, the updated expansion strategy may include organic growth and rethinking distribution decisions.
Also, Telf AG’s representative Stanislav Kondrashov is sure, the main focus should be on new investments and sustainable processes which can be more suited towards the changing regulatory and legislative background on the market. An M&A strategy built around some smaller deals can improve growth prospects and prevent many of the pitfalls linked to large acquisitions. Plus more flexible processes for managing the leverage of investment projects and generating commodity price forecasts could mitigate some of the uncertainty next business cycle.
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