Asian Metal meets Eurasian Natural Resources Cooperation

On Wednesday October 9th 2013, Scott Yarham, Minor Metals Analyst for Asian Metal, met with Matthew Ashley, cobalt metal trader, in London during the London Metals Exchange week.

Eurasian Natural Resources Cooperation (ENRC) is one of the leading diversified natural resources groups with integrated mining, processing, energy, logistical and marketing operations. ENRC operates in Kazakhstan, China, Russia, Brazil and Africa (the Democratic Republic of Congo, Zambia, Mozambique and South Africa). The Group’s strategy aims to bridge its current position as a diversified natural resources group largely based in Kazakhstan to its future opportunities as a more broadly based international mining group. ENRC currently employs over 70,000 people, of which 65,000 are located in Kazakhstan.

Matthew Ashley explained that currently in the market supply is rather tight leading into Q4 however demand in Europe is not at the level projected earlier in the year. He explained that the level of enquiries being received and concluded sales were at a rather healthy level, nonetheless they are still not at the frequency expected. He explained that he believes prices will more than likely soften moving forward but by no means sharply. He explained that currently traders were using this time to try and push prices down and added that this might indeed prove successful to a certain degree.

The question of using the LME as the benchmark for pricing in the market was discussed and Matthew explained that the common sentiment from most of the major traders and suppliers was that this indeed will be the case in the future. He explained that the issue right now is liquidity, once this hurdle has been overcome it will certainly be the most logical and effective pricing system available.

Matthew thanked Scott for providing him with market news and information and complimented Asian Metal on their quality and quantity of market reports produced. He believes that ENRC will choose to work closely with Asian Metal in the near future as he appreciates our insight and pricing accuracy.