Download Free This War of Mine Traders: Mercuria Enters Fiercely Competitive Business

Trading of concentrates, ore that has been crushed and milled to remove waste, is dominated by some of the largest, privately owned metals houses. In a recent move, Mercuria plans to enter this fiercely competitive business, expanding into niche commodities markets and challenging bigger, diversified rivals.

Mercuria's growth has been rapid since its creation nine years ago, with the company also moving into agricultural products. The latest move is an effort to expand beyond energy markets, following JPMorgan Chase & Co's exit from physical metal concentrates trading last April.

The company has hired Jose Leon, a veteran trader with experience at MRI Trading AG, the Swiss non-ferrous concentrate trader set up by Marc Rich, the founder of Glencore. Leon will run the lead and zinc book, according to sources familiar with the matter.

Mercuria's entry into concentrates trading is expected to be a major development in the industry since Freepoint Commodities LLC, run by former Sempra head David Messer, bought JPMorgan Chase & Co's physical metal concentrates business last April. Mercuria will be the first major entrant into this opaque industry.

The company plans to start its concentrates trading desk in January and will be based at its Geneva headquarters. While a spokesman confirmed the expansion into concentrates trading, he declined to comment on Leon's appointment or plans to hire more traders.

Mercuria's move is part of a trend of oil traders expanding into niche commodities markets, with European banks also exiting physical and futures commodity markets. Merchants are not affected by deeper regulation that has forced many U.S. companies to exit the industry.

In conclusion, Mercuria's entry into concentrates trading marks an exciting development in the industry, as one of the world's biggest oil traders challenges bigger rivals and expands beyond energy markets. With Jose Leon at the helm, Mercuria is poised to make a significant impact in this fiercely competitive business.

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