LONDON Global trading
house Trafigura Beheer BV traded 35 million tonnes of metal
concentrates, refined metals, iron ore and coal in 2012, up 20
percent from volumes traded the prior year, the Singapore-based
trading company said in the prospectus for a $500-million bond
it launched earlier this month.
The company recorded net profits
of $991.9 million in its financial year ended Sept. 30, down
11.2 percent from profits the previous year, according to the
prospectus, which was filed with the Singapore Exchange on
April 23. While profits were down in its last fiscal year,
Trafigura said it has seen an upturn in profits and revenues in
its first quarter ended Dec. 31.
Net profit for the period stood
at $216.1 million, up 3.1 percent year on year. The company has
been profitable every year since its creation in 1993 and net
profits have increased 13 percent on a compound basis for the
past three years, it said.
It is the first time the trading
house has made detailed financial information available to the
public, allowing for a measurable comparison to be made between
Trafigura and Glencore International Plc, its main competitor
in the metals markets.
"Trafigura considers that in the
nonferrous sector it ranks as the second-largest independent
trader behind Glencore, with Glencore acting increasingly as a
marketer of their own captive production (including Xstrata Plc
volumes)," Trafigura said.
Glencores revenues stood
at $214 billion in 2012up 15 percent year on
yearwhile its underlying earnings were down 8 percent
year on year to $5.94 billion.
Glencores merger with Xstrata as one that will result in
a "major change" in the commodities world, as the combined
company "will increasingly act as a mining corporation, with
Glencore marketing its own production."
"Based on market knowledge, the
group also believes that it is the second-largest independent
trader of nonferrous metals and minerals in the tradable
market for copper, lead and zinc metal, with a 26-percent
market share, where integrated companies have a majority
share," the company said.
In the prospectus for its
initial public offering, Glencore estimated that in 2010, it
held 60 percent, 45 percent and 50 percent of the addressable
markets for zinc, lead and copper, respectively.
Glencores share in the
zinc market is set to decrease at the end of the year, however,
as it breaks its offtake agreement for Nyrstar NVs
European commodity-grade zinc, which Trafigura and various
other parties are now bidding for.
In its prospectus, Trafigura
also offered accounts of its existing relationships with major
suppliers and customers in the metals market, identifying
Aurubis AG, Wuxi City Ling Feng Copper Co. Ltd., Korea Zinc Co.
Ltd., Boliden AB and others as some of its largest
Suppliers on the buy side
include Alcoa Inc., BHP Billiton Plc, Corporación
Nacional del Cobre (Codelco), Hindalco Industries Ltd.,
Kennecott Utah Copper, Mitsubishi Corp. and Rio Tinto Alcan,
among others, Trafigura said.
A version of this article
was first published by AMM sister publication Metal