Metals Traders Post Record Profits for Second Consecutive Year

Global metals trading houses are on track for another year of exceptional earnings, with several major firms reporting record or near-record performances as volatile markets, tight copper supplies and rising metal prices create lucrative trading opportunities.

Trafigura Group generated an estimated $2 billion in metals trading profit during its financial year ended in September, according to people familiar with the matter cited by Bloomberg. The company is still finalising its results, which are typically released in early December, and the final audited figures may change.

Glencore has also experienced some of its strongest metals trading profits, although its overall financial performance has been affected by a $480 million provision linked to its exposure to iron ore trader Radiant World.

The strong earnings have intensified competition for experienced traders, with established companies and newer market entrants seeking to expand their teams and capture a larger share of the metals market.

Copper Tightness and Price Gains Drive Earnings

The boom has continued despite earlier expectations that trading opportunities would narrow after US President Donald Trump did not proceed with proposed tariffs on refined copper last summer.

Uncertainty over whether tariffs could still be introduced has continued to create opportunities for traders shipping copper to the United States. At the same time, copper, gold and silver prices have climbed to record levels, while supplies of semi-processed copper concentrate have become exceptionally tight.

These conditions have benefited physical traders, who buy and sell metals and arrange their transportation between producers, processors and end users.

Mercuria, IXM and Vitol Expand Metals Operations

Mercuria Energy Group, which has expanded from energy trading into metals, is on course to match or exceed its operating profit of more than $300 million from the previous year, according to people familiar with the matter.

The company has invested more than $4 billion in metals transactions and assets, including opportunities involving Congolese copper and Indonesian aluminium, as it seeks to increase its market presence.

IXM, the metals trading division of China’s CMOC Group, is also expected to record its strongest year. CMOC’s half-year report said IXM had achieved record operating revenue for the corresponding period after strengthening its physical trading activities.

Vitol Group, the world’s largest commodity trader, is building its metals business and is expected to generate more than $100 million in metals profits this year, according to a person familiar with the matter. While this would represent a substantial improvement on its previous performance, the business remains smaller than some established competitors.

Vitol is also working to strengthen its metals trading team. The company has recruited Billy Henty, previously with Mercuria and Citigroup, to trade iron ore in Dubai. Discussions have also taken place with former IXM chief executive Kenny Ives, although no appointment has been confirmed.

The performance of these trading houses highlights how supply constraints, price movements and uncertainty over trade policy can create opportunities for companies operating across global metals markets. With demand for industrial and critical minerals remaining a key market focus, competition for trading expertise and access to physical supplies is continuing to intensify.