Mercuria Energy Group Ltd. has recorded approximately $300 million in trading profits so far this year through its metals division, signaling a strong return to the sector after years focused on oil and gas.
The figures, reported to Bloomberg by sources familiar with the matter, include realized profits and mark-to-market gains on unsettled positions and contracts for the remainder of the year. Mercuria declined to comment on the numbers.
Expansion and Team Growth
The metals division was established last summer under Kostas Bintas, formerly co-head of metals at Trafigura Group. The unit now employs around 150 traders and operations staff.
Mercuria’s accelerated entry into metals trading comes amid a year of high volatility and market dislocations, which created profitable opportunities for traders.
This rapid expansion allowed Mercuria to capitalize on a unique copper arbitrage, becoming one of the largest importers of copper cathode into the United States as global inventories shifted and China-bound cargoes were redirected to ports including New Orleans, Panama City, and Los Angeles.
The firm also executed a significant aluminum trading strategy, securing a leading position on the London Metal Exchange, contributing to the division’s robust performance.
Competitive Position
Mercuria has moved faster than peers such as Vitol Group and Gunvor Group, leveraging relationships in China and Africa to access suppliers and expand trading networks. Han Jin, Mercuria’s Asia head, has played a key role in establishing these connections, enhancing the firm’s global reach.
While Mercuria has faced challenges in metals trading in the past—including warehouse receipt fraud in China, disputes over copper deliveries, and a zinc concentrate bet affected by new mine output—the company has now established a stronger, more diversified metals platform.
Metals Market Context
Mercuria’s strong performance mirrors broader trends in metals trading. Glencore Plc reported record profits of $1.6 billion in the first half of the financial year, while Trafigura Group, the world’s largest copper trader, also posted increased first-half profits driven by metals trading.
The firm’s growth in the metals sector underscores the potential for trading houses to diversify beyond fossil fuels and benefit from market volatility in base and precious metals.
