The world’s largest commodity trading houses have turned upbeat on economic growth, signalling firmer raw materials prices in the second half of the year.
The positive outlook from traders including Glencore, Cargill, Mitsubishi, Archer Daniels Midland and Noble Group comes after a tough first half for the sector, with most companies reporting a plunge in sales and profits. But executives were optimistic for the second half on the back of China’s stimulus package.
“We are seeing demand pick up,” said Steve Marzo, chief financial officer at Noble Group, the Hong Kong-based diversified trader – echoing a view widely held in private by senior executives from rival commodities companies. The trading houses’ outlook is important because they are at the centre of trade and their wide business relationships allow them to anticipate economic cycles.