Rodrigo Echeverri - guest lecture at the National University of Singapore, October 2018
Credits - thanks for your contribution to the research departments at:
Macquarie Bank, BMO, IEA, BHP, Citi, Goldmnan Sachs, BP, ExxonMobil, FT
Beginners Guide to TikTok for Search - Rachel Pearson - We are Tilt __ Bright...
Opening the door to commodities - National University of Singapore
1. Rodrigo Echeverri
Head of Research, Noble Resources
October 12th, 2018 | Singapore
1
Opening the Door to Commodities
2. How did I become a trader?
Commodities as an asset class: Energy, Metals and Agricultural
Can I trade commodities?
Digging and transporting commodities
Coal, Oil, Steel, Metals
Commodities and you…
Opening the Door to Commodities
What I would be wondering about if I were you…
5. 1) What is my priority in life:
• Make money?
• Achieve recognition?
• Have power?
• Be happy?
• Have an interesting life?
2) What type of company would help you fulfill your goal better?
• Banking
• Hedge Fund
• Trading House
• Consultancy
• Commodities producer or end-user
Opening the Door to Commodities
What I would be wondering about if I were you…
Can commodities help you achieve your career goals?
6. 6
Opening the Door to Commodities
Commodities as an asset class:
Energy, Metals and Agricultural
7. Opening the Door to Commodities
Commodities: Classification
Agricultural (Soft) Commodities
Coffee, cocoa, sugar, corn, wheat,
soybean, fruit and livestock.
Energy Commodities
Coal, Oil and Gas
Carbon Steel Materials
Rebar, HRC, Iron Ore,
Manganese, Chrome
Base and Precious Metals
Precious: Gold, Silver, Platinum
Base: Copper, Nickel, Zinc, Lead
8. Opening the Door to Commodities
Commodities: American or Asian perspective anyone?
Coal trade is worth approximately 120 billion USD, but it is rarely
mentioned in the commodities literature
9. Opening the Door to Commodities
Commodities: Prices
0
100
200
300
400
500
600
700
1991 1994 1997 2000 2003 2006 2009 2012 2015 2018
Index
Major Commodities Prices
1991=100 (Base Year)
Coal Crude Gold Copper Sugar World Inflation
18. Important design considerations
• Waste
• Seam thickness
• Seam dipping angle
• Waste dump
• Recovery and dilution
• Stripping ratio
• Blasting
Opening the Door to Commodities
Digging and moving commodities
19. Open-pit mine - dragline Open-pit mine - waste dump
Open-pit mine: shovel & truckOpen-pit mine - topsoil
Opening the Door to Commodities
Digging and moving commodities
20. Room and pillar
Underground mine Longwall Shearer
Continuous miner
Opening the Door to Commodities
Digging and moving commodities
24. Gearless vessels:
• Cape, Panamax, Post-panamax
• Need external cranes or direct
loading
• Deep water ports (on both sides)
– draft 12 to 19 meters
Geared vessels:
• Can load and unload themselves
• Handy, Handymax
• Access to smaller ports – draft
between 9 and 12 meters
Opening the Door to Commodities
Digging and moving commodities
45. Opening the Door to Commodities
The “who-is-who” of commodities: Oil Companies
46. Opening the Door to Commodities
The “who-is-who” of commodities: Trading
47. Opening the Door to Commodities
The “who-is-who” of commodities: Miners
48. Opening the Door to Commodities
The “who-is-who” of commodities: Miners
49. Opening the Door to Commodities
The “who-is-who” of commodities: Miners - Glencore
50. Opening the Door to Commodities
The “who-is-who” of commodities: Miners – Rio Tinto
51. Opening the Door to Commodities
The “who-is-who” of commodities: Miners - BHP
• The top 4 commodities traders tend
to be companies with large positions
in oil and liquids
• The “merchants of grains” have
52. Opening the Door to Commodities
Reading List - Books
Trading / Technical / Inspirational
Foundational