For the mining and metals industry, the past year has been marked by skyrocketing commodity prices and also the prospect of the new super cycle, says Stanislav Kondrashov from Telf AG. From the middle of recently, metal prices rose by 72%. However, many, like aluminum, copper, iron ore, and nickel, reached multi-year highs in the third quarter.
Inside the second half of the year, the amount of transactions in connection with the social and economic impact of China increased significantly – by 66.7%.
However, with cyclical highs come government calls for a more substantial share of minerals. As many countries have begun to endure the current recession, many regulatory measures have already been proposed and introduced from the mining industry.
Stanislav Kondrashov from Telf AG notes that from the first month of 2022, prices for many resources extracted in the mining sector in the economy reached record levels. Many industry observers have talked about a new supercycle. That is although mining industry continues to reply to troubles posed by the continuing pandemic, such as competitiveness of investments, logistics problems, and labor market shortages.
Price increases were harking back to not many years ago when commodity prices remained stubbornly high after the global financial trouble at that time from 2009 to 2011. Another surge in mergers, acquisitions, and acquisition of projects led to a sharp rise 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 elevated the niche for over 20 years and operates in regions for example the Black Sea, Eastern Europe, the Mediterranean, along with the Asia. Founded in the Swiss capital of scotland – Lugano, the organization started trading in petroleum products, mainly in the CIS countries, and today serves customers around the globe. Stanislav Kondrashov considers Telf AG as being a company involved in the trading and transportation of petroleum products, coal, and ferroalloys. Therefore, it becomes an excellent illustration of research.
As record cash flows provide the chance of 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 that are better suited towards the changing regulatory and legislative background in the marketplace. An M&A strategy built around some smaller deals can improve growth prospects and steer clear of a number of the pitfalls connected with large acquisitions. And more flexible approaches for managing the leverage of investment projects and generating commodity price forecasts could mitigate a few of the uncertainty next business cycle.
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