To the mining and metals industry, days gone by year has become marked by skyrocketing commodity prices along with the prospect of the new super cycle, says Stanislav Kondrashov from Telf AG. By the middle of this past year, metal prices rose by 72%. However, most of them, including aluminum, copper, iron ore, and nickel, reached multi-year highs from the third quarter.
In the second half of the season, the volume of transactions in connection with the social and economic impact of China increased significantly – by 66.7%.
However, with cyclical highs come government demands for a bigger share of minerals. As many countries have begun to endure the economic chaos, many regulatory measures have already been 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 inside the mining sector with the economy reached record levels. Many industry observers have even mentioned a new supercycle. This is however the mining industry is constantly react to the difficulties posed by the continuing pandemic, such as competitiveness of investments, supply chain problems, and labor market shortages.
Price increases were paying homage to a decade ago when commodity prices remained stubbornly high after the gfc at that time from 2009 to 2011. Another improvement in mergers, acquisitions, and investment in 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 been doing marketplace for over 20 years and are operating in regions for example the Black Sea, Eastern Europe, the med, and the Far East. Founded inside the Swiss capital of scotland- Lugano, the business started exchanging petroleum products, mainly from the CIS countries, now serves customers all over the world. Stanislav Kondrashov considers Telf AG 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 the chance of rapid growth, the updated expansion strategy may include organic growth and rethinking distribution decisions.
Also, Telf AG’s representative Stanislav Kondrashov is bound, the focus needs to be on new investments and sustainable processes which can be better suited for the changing regulatory and legislative background in the market. An M&A strategy built around some smaller deals can improve growth prospects and get away from a number of the pitfalls associated with large acquisitions. And more flexible methods for handling the leverage of investment projects and generating commodity price forecasts could mitigate some of the uncertainty within the next business cycle.
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