What people are talking about
Tesla has agreed to a long-term contract to buy nickel directly from Vale mines in Canada. This falls well into Musk’s strategy of locking down non-Chinese supplies. Will we continue to see miners like Vale talk to more companies along the supply chain, aside from just car makers? Will other car makers follow Tesla and push to make deals with miners to get the security of supply?
Tata Steel will stop buying Russian coal at a time when other Indian steel manufacturers are trying to shore up the supply of discounted Russian coal. Is Tata self- sanctioning itself or is it because payments for coal purchases are almost impossible to make due to economic sanctions on Russian counterparties?
Chinese non-state refineries have been discreetly buying Russian oil at significantly discounted rates. With China coming under more scrutiny, is this trend likely to continue or lapse due to fear of US imposed sanctions?
Trafigura will invest a substantial undisclosed sum in a company called Green Lithium that is slated to build a lithium plant in England. Trafigura will supply unprocessed lithium to the UK refinery, which would then turn it into battery-grade metal. Will we continue to see commodity traders take more upstream positions and have joint ventures with raw material suppliers, producers, and plants?
Arcelor Mittal has successfully tested the use of green hydrogen to reduce iron ore at its industrial plant in Canada. More than 75% of CO2 emissions come from the process of reducing iron ore and the role of green hydrogen in this process is bound to reduce emissions dramatically. Will other steel makers adopt this success and incorporate green hydrogen in their own steel-making processes?
What we are currently working on
Metals Arb Trader, Singapore
Hedge Fund Base Metals Strategist, Singapore
Structured Finance / Project Finance Associate, Singapore
Agricultural Commodities Relationship Manager, Singapore
Cement Trading Manager, Singapore
Treasury and Trade Finance Manager, Hong Kong
Global Head of Iron Ore, Shanghai
Hedge Fund Portfolio Manager, Singapore
Structured Products Sales, Singapore
If you are interested in any of these roles, please reach out to us via the contact details at the end of this newsletter.
Changing landscape: Singapore’s new points-based Employment Permit (EP) system
Singapore will be introducing new changes to its EP process. From the 1st of September 2023 onwards, relevant candidates need at least 40 points under the Complementarity Assessment Framework (COMPASS) to pass.
There are four foundational criteria to determine eligibility: the individual’s salary, qualifications as well as the firm’s attributes of diversity, and support for local employment. 20 points are awarded if candidates exceed expectations, 10 points if they meet expectations, and 0 points if they do not
meet expectations in the respective categories. As an example, for qualifications, 20 points are awarded to candidates from a top-tier institution, 10 points to a candidate with a degree, and 0 points to those with no degree. Further, there are 2 additional bonus criteria: skills bonus and strategic economic priorities bonus. As an example, if a candidate possesses say technical skills that are not readily available in the local labour pool, then that candidate is awarded an additional 20 points. A summary of the new points system is shown below:
Source: British Chamber of Commerce Singapore
What is the purpose of this new system and what would it mean for the hiring scene? The goal of the framework is to continue to maintain and build on a strong Singaporean core labour force while adding value to the workforce diversity with high-quality foreign professionals. What this may mean for the commodities hiring landscape is perhaps an increase in professionals from niche areas such as traders and asset managers from asset classes that are not well understood and not traded easily
or digitally. Money managers who manage esoteric assets that require specific expertise might also add to the talent pool here. We may see a very different and diverse labour force next year. We at Aurex Group, encourage any discussion from clients who want to better understand the COMPASS process better and what it would mean for their business. We also welcome candidates who have talent in the above mentioned spaces, to come forward and have these conversations with us.
I hope you enjoy our latest market insight for metals and bulks commodities. For a discussion around recent mandates, compensation, or other hiring trends, please do not hesitate to get in touch.
Aurex Singapore Pte Ltd
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