Financial Times: Commodity Trading Goes Back To The Future

Covering our report Commodity Trading Goes Back To The Future, the Financial Times highlighted that commodity traders’ margins will fall up to 15% —to less than $30bn by 2025—unless the industry invests in new technology.

Noting that we are one of the few consultancies to track the performance of the industry, the FT spoke to Roland Rechsteiner, partner in our Energy Practice and co-author of the report, on its findings.

Roland said that after growing trading volumes aggressively between 2014 and 2017 to offset margin erosion, the industry now needed to prioritise boosting its analytical capabilities.

“The industry is maturing after a period of rapid growth, but it is also facing big changes ahead,” said Roland. “All commodity trading firms will have to review their business models.”

Read the full article here and discover more from our Energy Practice here.