The HC Commodities Podcast

Hedging is the basic tool of the commodity trader. Yet, outside that community it is little taught, little understood and underutilized – especially as raw material prices are becoming more volatile in an age of disruption. What is hedging? What are the costs and benefits and why is it not more exploited up and down the value chain. Our guest is Samuel Basi, author of the new book “Perfectly Hedged. A Practical Guide to Base Metals”. Samuel is the founder and CEO of Perfectly Hedged LLC a training consultancy for the sector and a former metals trader at both Trafigura and Greenwich Metals. For more on HC Group visit www.hcgroup.globalfor Perfectly Hedged visit: www.perfectlyhedged.com  

In commodities, the lowest cost producer or shipper is king.This in turn drives siting assets, determined by human factors such as cost, legal and tax regimes and geographic factors like proximity to rivers, coasts, production and markets. However, today the world is becoming more volatile both in weather events and in policy. And in fact locations a few miles apart can have very different risk profiles – with those choosing wisely outstripping competitors as crucial times of disruption.  And those risks are now being mapped down to the precise GPS coordinates. Our guest is someone who is leading the charge. Michael Ferrari is Chief Scientific Officer & Chief Investment Officer at AlphaGeo - AI-powered geospatial predictive location analytics platform that enables clients to assess location risks in the commodities sector and beyondTo visit AlphaGeo - https://alphageo.ai/

In this episode, our guest argues that not only is the energy transition happening, it’s happening faster and more profoundly that you can imagine…and it’s being led by China. The ‘age of renewables’ will be very different than the ‘age of carbon’ and the same forecasting assumptions do not apply. The energy transition is being driven by technology, economics, geo-strategy and, of-course, necessity. And the data proves it. Our guest is Kingsmill Bond, Senior Principal at the Rocky Mountain Institute (RMI). Kingsmill’s latest analysis is available in the link in the show notes. https://rmi.org/wp-content/uploads/dlm_uploads/2024/06/RMI-Cleantech-Revolution-pdf.pdf

In a deglobalizing and volatile world, sanctions can upend commodity markets overnight. Commodities underpin global trade and are often themselves direct targets of sanctions or swept up in restrictions imposed on trade infrastructure, such as finance and shipping. In this episode, we do a deep dive on the suite of Russian sanctions imposed since the invasion of Ukraine. How do sanctions work? How are they imposed and by whom? What are the specific Russia related sanctions and what are their consequences for the commodities sector? And how should companies prepare for and manage them? Our guest is Sarah Hunt, commodity trade and sanctions specialist lawyer at HFW. To find Sarah's seminar on sanctions visit the podcast page at www.hcgroup.global

In this episode, we are diving into the Japanese power market, which by virtue of its size, generation mix and recent liberalization, is fast becoming one of the most active power markets in the world, attracting a host of domestic and international energy merchants. What is the regulation that underpins the market? How does it function and who are the participants? Who is, and where do you get, the talent to build such a capability. Our guest is Xavier Veillard, Partner at Mckinsey, heading their global power and gas commodities offering. 

Western Governments have enacted a slew of policies to support energy security and its transition to a greener future. These policies can radically shift the economic landscape for the commodity sector participants. However, the reality of implementing these policies, from the power lines needed to the mines for critical metals, requires navigating byzantine levels of planning and approval. What does this mean for the West’s ability to compete in the energy transition. What does this mean for commodity traders who have historically eschewed close governmental relations? Why does that need to change? Our guest is Peter Stahley, Senior VP at Cassidy & Associates, a governmental relations service.  For pdf discussed visit https://www.hcgroup.global/hc-insider/hc-insider-podcast/governmental-relations-planning-and-policy-with-peter-stahleyFor more on HC visit  www.hcgroup.globalFor more on Cassidy & Associates https://cassidy.com/  

To find our more about Enco Insights visit www.encoinsights.com

In this episode, to celebrate 200 episodes and a name change, our host Paul Chapman reflects on the podcast, its goals and development and the back catalogue. A body of work, still highly relevant, that has traced the trends, participants and individual commodities (some old and some new), through one of the most interesting periods in the sector’s long history.

Trade finance is the lifeblood of the commodity sector. Liquidity shrank throughout the last decade in the wake of regulatory changes. Now deglobalization and sanctions, environmental pressures and volatility threaten this key resource. How have the banks responded and what of alternative providers? What does this mean for commodity traders and the markets themselves? Kristofer is the founder of Kimura, an asset management business dedicated to the commodities sector, with a central focus on private credit trade finance.Kimura host a stable of successful podcasts which you can visit here: https://www.kimuraperformance.com/category/podcasts/ 

In this episode, we do a deep dive into the dry freight market and how bulk commodities are shipped around the world and by whom. As the commodities markets themselves become more efficient, freight markets are starting to represent one of the biggest sources of risk and opportunity available to traders and charterers. This, in turn, is driving convergence between the traditional separation between ship owners, charterers and the traders. What is the structure of the market for dry freight? How do participants use Freight Forward Agreements? What is the impact on talent? And how could coming technology disrupt and develop this volatile corner of the commodities world. Our guest is Mads Frank Markussen, Head of Research and Market Intelligence at the European ship owner and freight trader, Navi Merchants

links to SuisseNegoce commodities review: https://www.suissenegoce.ch/commodities/commodities-2024-enLinks to Allassohttps://www.allasso.com/homeLinkes to Artis Works https://www.artis.works/

In this episode, Ariel Perez, Head of Environmental Products at Hartree Partners, returns to update us on the state of the carbon markets over the last two years in a more inflationary and unstable world? Global commodity leaders are calling for a price for carbon – are we any closer? How have compliance markets fared in the energy crisis and Russia’s invasion of Ukraine? Have compliance markets expanded globally? How have voluntary markets fared? What were the key outcomes from COP28 and what does the EU’s Carbon Border Adjustment Mechanism mean for the world? Could this be the catalyst for a global carbon pricing mechanism that can provide the much needed basis for market based solutions to the energy crisis.

To attend our HC Insider Podcast Live Event on the Future of Switzerland as a Commodities Trading Hub on April 16th, please RVSP here: https://www.eventcreate.com/e/hcinsider-podcast-geneva

To sign up for our HC Insider Podcast Live Event in Geneva on the evening of the 16th April please RSVP here:https://www.eventcreate.com/e/hcinsider-podcast-genevaWe are discussing the Future of Switzerland as a Commodities Trading hub  

The US Dollar has been the world’s global reserve currency since the Second World War, underpinning global trade and US dominance. However, as our guest argues, its use as a global policy tool such as in sanctions, increasing geopolitical competition and political instability at home is threatening its status. Various countries and blocs are attempting to circumvent dollar trades. Yet, perhaps, the dollar’s biggest threat comes from blockchain and especially Bitcoin. What does that mean for commodities and the world? Our guest is Jonah Van Bourg, former oil derivatives trader at Goldman Sachs and Vitol, crypto and precious metals trader at DRW and now helping to build Onyx Commodities. Jonah is also the co-host of the 1000x podcast.To see the 1000x podcast visit: https://www.youtube.com/@1000xPodcastFor more on HC Group visit: www.hcgroup.global

You can request to sign up for Mercury Resources newsletter here: https://www.mercuryresources.com/contact-us 

In this episode we address that very special commodity Uranium, crucial to the energy and defense industry alike. Nuclear’s role is the energy transition is increasingly recognized. But where will the needed Uranium come from in a more fragmented world?How is Uranium mined, processed and delivered to the nuclear energy plants. Where is it produced and who controls the supply chain? How is Uranium traded? How has the market fared and what does the future hold. Our guest is John Cash, CEO of Ur Energy (URG), the leading uranium miner in North America.

In this episode, Ilia Bouchouev joins to discuss his new book, ‘Virtual Barrels: Quantitative Trading in the Oil Markets”. What are virtual barrels? How has oil trading been fundamentally changed due to them? What has that meant for flat price, participants and trading strategies? The book is a comprehensive exploration of quantitative trading in the markets and introduces innovative approaches to pricing oil options and advances the theory of storage. Ilia is Managing Partner at Pentathlon Investments, a Senior Research Fellow at Oxford Institute of Energy Studies and an Adjunct Professor at NYU.You can find copies of his book here:https://a.co/d/c5LKs44And follow his work here https://www.oxfordenergy.org/publications/energy-quantamentals-myths-and-realities-about-algorithmic-oil-traders/

At the core of commodity trading is forecasting. The last decade of low prices and low volatility has transformed into a market of high volatility and higher prices. How has that changed the nature of forecasting? What does it  mean for tools, models and skillsets. And are markets still forecastable? Our guest is Matteo Mazzoni, Director of Energy Analytics at ICIS, an independent commodity intelligence service that provides data analytics in energy and chemicals. 

On Tuesday 27th February, HC Group and bp hosted a breakfast and networking event for women in the trading and origination community. The highlight of the morning was a thought-provoking panel discussion featuring industry leaders Carol Howle, EVP Trading & Shipping at bp and Alice Acuña, EVP Trading at CEPSA. Moderated by Laura Berger, Portfolio Director, Liquid Fuels & Chemicals at HC Group, the panel delved into strategies for fostering greater diversity and inclusion within commodity trading. The discussion resonates with this year's International Women's Day theme, "Inspire Inclusion." Let's continue to work together in championing diverse perspectives and contributions, ensuring inclusivity for all women.