London Commodity Brokers Ltd is expanding its metals activities to include nickel, copper and eventually other base metals, the UK-based trading company said Monday.
David Gaddes, former managing director of Russian-owned trading firm Norilsk Nickel Europe, joined LCB on July 1 and "will provide services to global consumers of nickel and copper, structuring custom built solutions to supply chain issues between procurement and sales including but not limited to stock, finance and risk issues," the company said in a statement.
This will eventually be rolled out to include other base metals, LCB added.
LCB "has been through a trying period over the last few months as a result of the unpredictably volatile physical commodity markets in which LCB operates," it said, noting that earlier this year the company announced the sale of its Dubai office to the management there.
"As a courtesy, LCB stayed out of the coal and freight market in India, Pakistan and the Middle East while the new owners got their house in order," the company said. "This transition period is complete and LCB is very pleased to announce the recommencement of business in these areas."
Following the restructure, LCB "has significantly expanded its portfolio of products and service offerings to the market," the company said, noting that as well as its core business of physical coal and iron ore broking, the company has launched a physical freight desk, based in London with support in Singapore, with an emphasis on dry bulk cargo.
LCB said it is also "exploring opportunities in the supply and procurement of crude oil and petroleum products, scrap metals, agricultural products and aggregate products."
"These are exciting times for us, commodity broking has been through so much upheaval in the past few years and companies need to adapt to it if they are going to survive," said CEO Clive Murray in the statement.
"It is no longer viable for physical commodity brokers to all chase the same standardised coal and iron ore contracts anymore, you need to find new ways of adding extra value to help your clients," Murray added.
LCB said it is also looking to develop the UK market granulated blast furnace slag from Europe, Asia and Turkey, having helped on if its customers to bring in the first 50,000 mt trial shipment into the UK late last month.
"As a result of this development in the GBFS market, LCB has expanded to include other aggregates such as cement and clinker," the company said.
