The global iron ore extraction industry has faced a number of financial pressures since the financial crisis a decade ago. Over the last five years, prices have been extremely volatile, with occasional sharp spikes arresting a general slump in prices as the market becomes increasingly saturated and demand from key export markets (most notably China) weakens.

In contrast, though the price of uranium fell sharply in 2017, a robust reaction from suppliers cutting their production volumes significantly has increased interest in the commodity. Finally, it’s more naturally abundant but less radioactive cousin thorium continues to be extracted and traded between countries and firms engaged in R&D exploring its use in the energy and military sectors.

As extremely high-capital, low-revenue businesses which often trade with few, well-established customers in high volumes, the financing needs of commodities traders can be complex. Moreover, the operational risk posed to the transport of commodities, the financial risk of dealing with international suppliers in unfamiliar territories, and the currency risk posed by exchange rate fluctuations can all create issues for such businesses. Thankfully, by providing bespoke finance to such firms on terms specifically created to support commodity traders to conduct successful transactions and grow their margins, Trade Finance Global can help.