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Thungela Resources Agreement Is A Sign Of Changing Commodity Trading Trends – International Trade & Investment



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International commodity trading has experienced tumultuous times
lately – mostly as a result of the state of the global
economy, escalation in interest rates and the ongoing war in
Ukraine.

However, as a consequence, this position has also created new
markets and opportunities for commodity traders, particularly those
trading in coal.

Many European countries have recently been sourcing commodities
from countries with whom they have not traded commodities in the
past due to the changes in the need to stockpile certain
commodities and the risk of current trading partners not being able
to meet demand.

Thungela Resources has recently signed a long-term agreement with
Transnet pertaining to coal rail capacity and rates.

The agreement appears to have been aimed at mitigating future
issues with rail infrastructure and capacity at the Richards Bay
Coal Terminal (RBCT).

Transnet has in the past been unable to meet its obligations to
coal suppliers, citing issues such as vandalism and a lack of
trains.

The coal price has significantly increased after Russia’s
invasion of Ukraine, which in turn has increased the need for
proper infrastructure as traders attempt to utilise the favourable
trading conditions.

Barnard’s specialist commodities team is equipped to advise
on all manner of commodity transactions, both on behalf of sellers
and buyers, and in addition provide escrow services that facilitate
the payments to be made in terms of the transactions.

The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.

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