The HC Commodities Podcast

Global regulators are narrowing their focus on the commodities sector and billions of dollars have been paid in fines. The world has become both more transparent and more risky in the wake of deglobalization, sanctions and the energy transition bringing its increased public scrutiny. The risks are enormous both the companies and individuals. And as such, compliance is an ever more important topic. To discuss compliance, enforcement and best practice is Gerben Schreurs, Partner at the Forensic Risk Alliance, or FRA, an independent forensics firm that conducts investigations, monitorships and compliance reviews, as well as Barry Vitou, Partner at HFW, the global law firm, where he is Head of Investigations, White Collar and Compliance. As always, you can really support the show by leaving us a positive review on the platform you're listening on.

show. Jonathan’s new book - Commodity Professionals: The people behind the trade – is a collection of interviews spanning all the professions that create the commodity supply chains. How have these roles evolved in a more volatile world? How are the trading houses fairing since we last caught up with Jonathan?For more on HC Group visit: www.hcgroup.global

Marco Raugei, a Senior Lecturer at Oxford Brookes University and an expert in energy systems, discusses the intricacies of the energy transition. He highlights how oversimplifications in public narratives can obscure important trade-offs. The conversation delves into the sustainability of renewable technologies, the complexities of energy return on investment, and the need for a systemic approach to address ecological challenges. Raugei calls for critical thinking and careful analysis to navigate the evolving landscape of energy and electrification.

Jeff Currie, Chief Strategy Officer at The Carlyle Group and former Global Head of Commodities Research at Goldman Sachs, shares his insights on the commodities market's future. He explores whether the long-predicted commodity super cycle is a reality or a mirage, fueled by rising capital expenditures. Currie discusses the impacts of geopolitical tensions and dollar weaponization on energy and metals prices. He delves into the dynamics of energy transition, balancing traditional and renewable investments, and the importance of stable policies amidst global volatility.

Data is the new the economic engine of the world. Globally, data centers are proliferating bringing their huge demand for energy – especially clean energy delivered reliably. Markets, policy and regulation are still adapting, often too slowly, to the changing energy mix and decarbonization demand. Could data centers be the engines of change to bring our power grids into a renewable ready world? Could this be the energy management opportunity of the decade for power traders? Our guest, Eugene McGrane argues just this. Eugene is an Executive Managing Director at Cushman Wakefield, supporting their power clients across all real estate categories. 

In this episode we explore commodities’ role in asset management and portfolio construction? Why should asset managers and investors seek exposure to commodities within their portfolios? What are their historical long-term performance as part of a broader mix of equities and debt? Indeed, are institutional investors currently underweighted, especially as we enter a period of higher inflation and industrial restructuring? Our guest argues they are and outlines why: Hussein Allidina is Managing Director and head of commodities at Toronto Dominion Asset Management.For more on HC Group visit www.hcgroup.global 

Hedging is the basic tool of the commodity trader. Yet, outside that community it is little taught, little understood and underutilized – especially as raw material prices are becoming more volatile in an age of disruption. What is hedging? What are the costs and benefits and why is it not more exploited up and down the value chain. Our guest is Samuel Basi, author of the new book “Perfectly Hedged. A Practical Guide to Base Metals”. Samuel is the founder and CEO of Perfectly Hedged LLC a training consultancy for the sector and a former metals trader at both Trafigura and Greenwich Metals. For more on HC Group visit www.hcgroup.globalfor Perfectly Hedged visit: www.perfectlyhedged.com  

In commodities, the lowest cost producer or shipper is king.This in turn drives siting assets, determined by human factors such as cost, legal and tax regimes and geographic factors like proximity to rivers, coasts, production and markets. However, today the world is becoming more volatile both in weather events and in policy. And in fact locations a few miles apart can have very different risk profiles – with those choosing wisely outstripping competitors as crucial times of disruption.  And those risks are now being mapped down to the precise GPS coordinates. Our guest is someone who is leading the charge. Michael Ferrari is Chief Scientific Officer & Chief Investment Officer at AlphaGeo - AI-powered geospatial predictive location analytics platform that enables clients to assess location risks in the commodities sector and beyondTo visit AlphaGeo - https://alphageo.ai/

Kingsmill Bond, a Senior Principal at the Rocky Mountain Institute specializing in energy transition, discusses the rapid shift to renewable energy, emphasizing China's leading role. He explains how current models are outdated, and the need for urgent action against rising emissions is critical. Bond highlights the decline in renewable costs and the significance of technological advancements. He also critiques misconceptions surrounding renewable energy's efficiency and the necessity for innovative policies to match growing consumer demand, shaping a sustainable future.

In a deglobalizing and volatile world, sanctions can upend commodity markets overnight. Commodities underpin global trade and are often themselves direct targets of sanctions or swept up in restrictions imposed on trade infrastructure, such as finance and shipping. In this episode, we do a deep dive on the suite of Russian sanctions imposed since the invasion of Ukraine. How do sanctions work? How are they imposed and by whom? What are the specific Russia related sanctions and what are their consequences for the commodities sector? And how should companies prepare for and manage them? Our guest is Sarah Hunt, commodity trade and sanctions specialist lawyer at HFW. To find Sarah's seminar on sanctions visit the podcast page at www.hcgroup.global