What people are talking about
Sanctions and capital flows have made it increasingly challenging for Russian firms traditionally based out of Switzerland and London to do business and thus we have seen energy and commodity announce relocations of their corporate offices to the UAE. Traditionally a region short on bulks and metals talent, we are now seeing a demand for those open to be relocated with the resulting compensation that goes with it.
Food security concerns and supply chain difficulties resulting from the Ukrainian conflict are increasingly at the forefront of many agricultural traders and producers as multiple nations halt exports in favour of their domestic markets. Prices of downstream consumer foodstuffs have been significantly affected as the prices of rice, corn, and wheat rise.
Within Metals, supply chain issues have also led to rising prices, as a result of which, a growing amount of attention is being paid to the recycling/scrap industry across both ferrous (particularly steel) and non-ferrous (particularly the EV segment) products.
For Shipping, there has been a noted ongoing drive towards expansion in Dubai due to multiple geopolitical factors including a conspicuous inflow of foreign assets and a more convenient timezone with which to access both Western and Eastern markets.
What we are currently working on
European Thermal Coal Sales/Marketer, Singapore/Europe
Thermal Coal Trading Manager, Singapore
Aluminium Trader, Singapore
Carbon Originator, Singapore
Head of Petcoke Trading, Singapore
Steel Derivatives Trader, 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: Focus on supply chain security and upstream investments
In recent times, we have seen how over-dependence on one country or supplier has brought about major consequences, especially if that supplier is unable to deliver promised goods. Further, an overnight attempt to transition this dependence onto alternative sources has not particularly seen success.
To alleviate this problem, however, certain interesting ties ups and partnerships have happened in the commodities space. Tesla has signed a long-term contract with Brazilian miner Vale to buy nickel from its mines in Canada. Vale is the world’s number 1 producer of nickel, followed by Norilsk Nickel and Jinchuan Group. The move to sign with Vale highlights Tesla’s desire to diversify and reduce reliance on its Chinese and Russian suppliers. Last year, Tesla signed to buy nickel from a nickel mine part-owned by Rio Tinto in the USA and from BHP’s Nickel West asset in Australia. Nickel West also has the first nickel sulphate plant that will produce enough premium nickel sulphate to make 700,000 electric vehicle batteries annually, once fully operational.
We have also seen the trading house, Trafigura investing upstream with Green Lithium to build a-
lithium plant in England. This upstream investment will help the trading house have better control over the quality and supply of its battery-grade metals portfolio. This would translate into more sturdy, long-term profits.
So, what does this all mean for the hiring scene going forward? The possibility of trading houses expanding their hard assets might fuel a demand for talent that is focused on the upstream side of the business. Miners may re-look at their own customer portfolio and require experts who can understand perhaps even retailers and customers. Commercial organizations and trading firms may start hiring more technical staff and this is an area, many may not have the expertise in. This will largely be an education process for clients and candidates in this space, given changes in mindset and how success is measured.
We at Aurex Group welcome any discussions from clients who are looking for advice to assist with talent acquisition plans in this domain. Further, our consultants are also well equipped to counsel candidates who wish to move into more commercial environments.
New Joiner in Aurex Bulks and Metals team
Finally, we would like to welcome to our team, John Ong! John has recently joined Aurex Group in Singapore as an Associate Director within the Natural Resources & Commodities team.
John will be supporting clients and candidates across the Agriculture, Metals, and Shipping industries, handling senior front office appointments. He brings extensive knowledge and relationships from across the market and bolsters the capability of the global Dry Bulk team at Aurex Group.
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
email@example.com | +65 9007 2185
12 Marina View, #11-01 Asia Square Tower 2, Singapore 018961
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