Commodity company earnings on a global basis are under pressure thanks to the lowest prices for a decade across the entire commodity spectrum.
For centuries, commodity markets price fluctuations have impacted not only global and domestic firms but also directly influence nation’s and people’s lives. This trend is expected to continue, so keeping abreast of commodity markets dynamics is critical.Global markets are experiencing yet another challenging period while most of the largest economies around the globe are tackling a range of issues. Last month China, the main commodity consumer in recent times, experienced the fastest decline in its factory sector in seven years. The Yuan’s devaluation further highlights that global economic conditions are worsening and creating more pressure on commodity markets. Rising uncertainty in the Middle East and Africa has reduced investor confidence resulting in huge fluctuations in assets owned by global commodity players.
Commodity company earnings on a global basis are under pressure thanks to the lowest prices for a decade across the entire commodity spectrum; from energy baskets to base metals, with significant lows in oil and copper. In this environment minimising costs and responding more rapidly to changing demand is increasingly important. CFOs and CIOs are increasingly exploring restructuring and looking for ways to reduce costs. Options for tackling these bearish market trends by improving operational costs, strategic transformations, lowering dividends, boosting production or eventually raising equity or disposing assets.
At BJSS we are responding to our client’s needs by adapting our commodity propositions and leading transformational methodologies. These enable our customers to better manage current industry challenges by reducing operational costs and leveraging the latest technologies to increase organisational agility.