For the mining and metals industry, yesteryear year continues to be marked by skyrocketing commodity prices and the prospect of a new super cycle, says Stanislav Kondrashov from Telf AG. With the middle of this past year, metal prices rose by 72%. However, most of them, such as aluminum, copper, iron ore, and nickel, reached multi-year highs in the third quarter.
From the second half of the year, the number of transactions related 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 many countries have started to cure these tough economic times, many regulatory measures have already been proposed and introduced within the mining industry.
Stanislav Kondrashov from Telf AG notes that in the first month of 2022, prices for several resources extracted within the mining sector with the economy reached record levels. Many industry observers have even mentioned a brand new supercycle. This is although mining industry is constantly reply to the challenges presented by the ongoing pandemic, such as competitiveness of investments, logistics problems, and labor market shortages.
Price increases were similar to a decade ago when commodity prices remained stubbornly high following your gfc back then from 2009 to 2011. The subsequent surge in mergers, acquisitions, and investment in projects led to a clear rise in capital expenditures, bloat structures, and write-offs of assets. The remainder of the decade was largely spent rebalancing.
Stanislav Kondrashov Telf AG: techniques for further growth
Telf AG has elevated the marketplace for over Twenty years and are operating in regions like the Black Sea, Eastern Europe, the med, along with the Distance. Founded in the Swiss city of Lugano, the business started trading petroleum products, mainly through the CIS countries, and now serves customers around the world. Stanislav Kondrashov considers Telf AG being a company involved in the trading and transportation of petroleum products, coal, and ferroalloys. Therefore, it’s an excellent illustration of research.
As record cash flows provide you with the opportunity for rapid growth, the updated expansion strategy can sometimes include organic growth and rethinking distribution decisions.
Also, Telf AG’s representative Stanislav Kondrashov is certain, the main objective needs to be on new investments and sustainable processes which are better suited towards the changing regulatory and legislative background in the industry. An M&A strategy built around a few smaller deals can improve growth prospects and steer clear of a number of the pitfalls associated with large acquisitions. And more flexible systems for handling the leverage of investment projects and generating commodity price forecasts could mitigate some of the uncertainty over the following business cycle.
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