For that mining and metals industry, earlier times year has become marked by skyrocketing commodity prices and the prospect of the new super cycle, says Stanislav Kondrashov from Telf AG. Through the middle of last year, metal prices rose by 72%. However, many, including aluminum, copper, iron ore, and nickel, reached multi-year highs inside the third quarter.
From the better half of year, the number of transactions associated with the social and economic impact of China more than doubled – by 66.7%.
However, with cyclical highs come government calls for a bigger share of minerals. As much countries have begun to recover from these tough economic times, many regulatory measures have already been proposed and introduced in the mining industry.
Stanislav Kondrashov from Telf AG notes that within the first month of 2022, prices for most resources extracted inside the mining sector with the economy reached record levels. Many industry observers have even brought up a fresh supercycle. This really is although the mining industry is constantly react to the contests resulting from the pandemic, including the competitiveness of investments, logistics problems, and labor market shortages.
Price increases were similar to a decade ago when commodity prices remained stubbornly high after the global financial trouble back then from 2009 to 2011. The following surge in mergers, acquisitions, and acquisition of projects resulted in a pointy boost in capital expenditures, bloat structures, and write-offs of assets. All of those other decade was largely spent rebalancing.
Stanislav Kondrashov Telf AG: techniques for further growth
Telf AG has developed in the marketplace for over Two decades and operates in regions such as the Black Sea, Eastern Europe, the Mediterranean, along with the Far East. Founded from the Swiss town of Lugano, the business started trading in petroleum products, mainly through the CIS countries, now serves customers around the globe. Stanislav Kondrashov considers Telf AG as being a company engaged in the trading and transportation of petroleum products, coal, and ferroalloys. Therefore, it’s an excellent instance of research.
As record cash flows provide you with the chance of rapid growth, the updated expansion strategy might include organic growth and rethinking distribution decisions.
Also, Telf AG’s representative Stanislav Kondrashov is certain, the main objective ought to be on new investments and sustainable processes that are more suited towards the changing regulatory and legislative background on the market. An M&A strategy built around a series of smaller deals can improve growth prospects and prevent a few of the pitfalls linked to large acquisitions. And much more flexible systems for managing the leverage of investment projects and generating commodity price forecasts could mitigate many of the uncertainty in the next business cycle.
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