Overview

our activities

Bridging the Gaps in Volatile Commodity Markets

Mercuria adds value throughout the entire commodity supply chain.

Our expertise in connecting supply with demand, transforming products, and efficiently operating an infrastructure and logistics network, means we can fully support and risk manage the entire supply chain.

Our counterparts therefore look to us as a strategic service provider.

The physical commodity space can be a dynamic and challenging environment, characterized by market inefficiencies and price discrepancies across regions and timeframes. Mercuria’s core expertise lies in identifying and addressing these disparities, acting as a bridge to rebalance market fundamentals and optimize value for our clients. 

We leverage our comprehensive understanding of market dynamics and logistical factors to implement various arbitrage strategies. These include: 

  • Geographic arbitrage: Identifying price differences between geographically separate markets and facilitating the efficient movement of commodities between them.
  • Technical arbitrage: Opportunities that arise from variations in transportation, storage, and processing costs to optimize the value chain. 
  • Time arbitrage: Storage of commodities to help smooth supply and demand imbalances. 
  • Contractual arbitrage: Unlocking value by efficiently navigating the complexities of diverse contractual terms and pricing mechanisms.

Underpinning our expertise is a diversified portfolio of strategically located assets. These include logistics terminals, bio-refineries, metal warehouses, and upstream ventures in key commodity sectors. These physical assets provide us with the operational flexibility and logistical control necessary to execute our strategies with precision and efficiency. 

Furthermore, we actively collaborate with stakeholders across the energy spectrum, facilitating the integration of emerging renewable energy sources like solar and wind into the existing power grid. By bridging the gap between established and alternative energy sources, we contribute to a more sustainable and secure energy future. 

Mercuria’s role also transcends just trading. We are a comprehensive solutions provider, dedicated to navigating the complexities of the volatile commodity market and delivering optimal value for our clients while actively shaping a more sustainable future.

Global footprint

Proximity and agility to thrive in a dynamic environment

At Mercuria, we believe proximity is a differentiator. Maintaining a strong physical presence in key locations across the globe is not just about convenience; it is fundamental to our ability to deliver superior service and value to our customers. By being close to both producers and consumers, we gain deeper market insights and real-time intelligence on product flows, logistics, and fundamental factors that influence the market. 

This adjacency also empowers us to optimise the supply chain through our strategic network of assets. We leverage our own terminals, storage facilities, and blending capabilities to efficiently move, store, and optimise the flow of various commodities. When needed, we seamlessly tap into third-party infrastructure, ensuring flexibility and access to the most advantageous routes and resources. 

To keep pace with evolving market dynamics and customer needs, we actively adjust and expand our global footprint. We have strategically opened new offices in key regions and expanded our existing representative presence to strengthen our local connection. This continuous geographical diversification allows us to quickly react to market shifts and opportunities anywhere in the world, while ensuring consistent high-quality service across all locations. 

Mercuria’s presence extends beyond an extensive network of offices; it encompasses a deep operational footprint in more than 50 countries. Our regular activity across diverse geographies and markets provides us with invaluable industry intelligence and a comprehensive understanding of global trends. This rich data and market expertise empower us to identify critical short-, medium-, and long-term trends, adapt our business model to evolving customer needs and stay ahead of the curve in a constantly changing landscape. 

Our global operation is structured around three major trading hubs: Europe, Middle East, and Africa (EMEA), Asia and the Americas. Each hub acts as a multi-product powerhouse, fostering diversification and a holistic approach to regional markets. This structure guarantees not only a deep understanding of local intricacies but also immediate responsiveness to situations anywhere in the world, ensuring we consistently deliver on our commitment to customer excellence. 

By prioritizing proximity, agility and deep market intelligence, Mercuria positions itself as a trusted partner for businesses navigating the complexities of the global commodity market. We go beyond just trading; we build trusted relationships and provide comprehensive solutions that optimize supply chains, deliver value and empower our customers to thrive in a dynamic global environment.

What we trade

Diversification for resilience and opportunity

Mercuria has evolved significantly over the past two decades, transitioning from a focused crude oil trader to a diversified leader in the global energy and environmental products market. Today, our portfolio encompasses a wide range of commodities, including: 

  • Energy: Biodiesel, natural gas, power, liquefied natural gas (LNG), refined products, and crude oil. 
  • Environmental products: Carbon credits, renewable energy certificates and other sustainability instruments. 
  • Dry bulk and soft commodities: Iron ore, coal, grain, and other physical commodities. 
  • Metals: Copper, aluminium, zinc, and other metals, including transition metals. 

This diversification is a strategic cornerstone of our success. By operating across multiple, often interlinked commodity sectors, we gain several key advantages: 

  • Resilience: When adverse market conditions impact one segment, we can leverage strength in others to mitigate risk and maintain overall stability. This diversification acts as a natural hedge, creating a stronger foundation for sustainable growth. 
  • Agility: With expertise and presence across diverse markets, we can quickly adapt to evolving trends and capitalize on emerging opportunities. We’re well-positioned to identify and embrace cross-commodity synergies and solutions, unlocking new avenues for value creation. 
  • Market Insights: Our multi-faceted view of the global commodity landscape offers invaluable market intelligence. By analysing and cross-referencing data across various sectors, we gain a deeper understanding of underlying trends and can anticipate future movements with greater accuracy. 

This diversified approach equips us to be proactive partners in shaping the future of the energy and environmental product landscape. We go beyond navigating existing markets; we actively seek out and contribute to innovative solutions that bridge the gap between traditional commodities and a more sustainable future. 

    Our assets

    Building a bridge to a sustainable future

    Beyond Mercuria’s trading and financial capabilities, we strategically leverage a diverse portfolio of assets to stay at the forefront of the evolving energy landscape. These assets encompass full ownership entities, partnerships with varying equity shares and even collaborations with non-equities where Mercuria provides financing or operational support. 

    One unifying thread binds these assets: their alignment with the energy commodities market. They serve as crucial touchpoints, keeping us aligned to developing market trends and better serve our physical customer base. 

    While the historical cornerstone of our portfolio comprised traditional fossil fuel assets, we are undergoing a significant transformation and are rapidly investing in a future powered by evolving technologies, non-traditional energy production and strategic metals crucial for renewable energy infrastructure. This strategic shift reflects our ambitious public commitment: by 2025, 50% of our investments will be in green or renewable energies and technologies, a goal which we surpassed at the end of 2022. Furthermore, we have already achieved net neutrality for greenhouse gas emissions generated from our business operations by 2050, by offsetting any of our Scope 1 & 2 carbon emissions that we can’t yet abate. 

    This proactive approach to asset diversification is not merely a passive response to market trends; it’s an active contribution to the global energy transition. Through our investments in these cutting-edge technologies and sustainable energy solutions, we envision a future where we meet our customers’ evolving energy needs responsibly and securely, both today and well into the future.

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