The commodities industry faces a difficult year ahead with an
ever changing political landscape, a US - China trade war and the
introduction of innovative technology: this will present new
challenges, but also opportunities, for traders.
Is consolidation between the industry's leading players
inevitable?
US - China Trade War
Despite a temporary ceasefire between the US and China, the
reality is that many of the trade tariffs remain in place. Most
notably, the US-imposed tariffs target steel and aluminium imported
from China, and the China-imposed tariffs target US agricultural
and consumer products.
The US/China trade deficit hit a 10 year high in December 2018,
when the import/export deficit increased to $491 billion. Given the
unpredictability of the Trump administration, it is not clear what
this will mean for the commodities industry in the short, medium or
long term.
