Leading energy giants expand metal operations amid record profits

Vitol Group, Gunvor Group, and Mercuria Energy Group are expanding their metals divisions, seeking to invest record profits.

As forecasters grow increasingly optimistic about copper, aluminum, and other metals, major players like Vitol Group, Gunvor Group, and Mercuria Energy Group are bolstering their metals divisions. This move coincides with anticipated production shortfalls, driving renewed interest in the sector. 

While historically challenging, particularly with dominance from Glencore Plc and Trafigura Group, these energy giants are poised to disrupt the market. With their substantial resources, they're well-positioned to capitalize on larger-scale trades, potentially squeezing smaller competitors.

 Gunvor, for instance, is expanding its team with industry veterans, signaling a strategic shift towards bulk trading. Vitol, on the other hand, is eyeing aluminum markets initially, leveraging its expertise in large-scale commodity movements. Mercuria, not to be outdone, is considering a significant expansion into base metals trading, a move that could reshape the market landscape. With their immense capital reserves, these energy traders are poised to make waves in the metals industry, potentially reshaping dynamics and investment strategies.