Raw materials trading
Supply and demand remain the decisive factors in determining the price of commodities. A constantly growing world population and increasing prosperity in populous countries, led by China, are creating high demand pressure. This will not change in the next few years.
The pessimistic assumptions assume annual growth of 7% for China over the next decade. Per capita oil consumption in China is still nine times smaller than in America today.
An increasingly affluent middle class affords more consumer goods, eats more meat, needs more energy. China’s soybean imports illustrate this point impressively. At the same time, raw material suppliers are trying to meet this increased demand. Higher extraction costs also often act as a price driver. Around the world, for example, copper mines are battling declining copper levels. As a result, a significantly higher amount of ore has to be mined to recover the same amount of copper.
Due to the significantly higher volumes, the elicitation of supply and demand leads to increased price fluctuations. Relatively small influences can lead to extreme shortages or even to a short-term oversupply. With fundamental knowledge, these fluctuations can be identified and exploited. We would be happy to show you current possibilities as well.
