The metals market is going through several changes throughout the years. These changes bring along several risks that companies have to deal with.
Mihail Manasov from RJH Trading Ltd gave us an exclusive glimpse on how to deal with the supply chain risks before his session at ComRisk this coming May.
Please tell us briefly about your role as well as what you’re currently working on?
I am currently working at RJH Trading. I’m involved in all aspects of trading in the company mainly in tin and the precious metals. My role is to manage all the risks associated with the trading business and I’ve been in similar jobs for 25 years.
What is your overview of the current metals market?
I believe we are in an era of change. There are quite a lot of geopolitical challenges in the Middle East, Asia and the USA. We are facing many changes. We have had cheap money for a very long period of time which inevitably results in different bubbles happening all over the place. I think we live in an interesting time. The only question is will it get more interesting?
What would you say are the main risks for your company across the supply chain?
As I mentioned, we are a trading company and we are able to hedge most of our metals and currency exposures which leaves only a small part of our minor metals and Ferro alloys business which we have to either trade back to back or have small open positions. Therefore our books are relatively square.
Give us a sneak peek on the keys to successfully mitigate supply chain risks?
First of all, we have to identify the risk then decide on an implementation of the
appropriate risk management strategies with a combination of the best instruments suited for the same in order to minimize it, while of course keeping the operational risks under control at all times. The only thing I would add is that desertification is a natural risk management procedure and implementation of the know of your customer procedures a must.
“We have to identify the risk then decide on an implementation of the appropriate risk management strategies with a combination of the best instruments suited for the same in order to minimize it, while of course keeping the operational risks under control at all times”
Any chance you can give us a preview of the topic you’ll address at COMRISK: "Risk management along the metals supply chain”?
I plan to cover the 3 main presentation points. I’ll try to identify the risk along the metal supply chain, how to quantify and monitor the same and try to cover the ways to successfully mitigate these risks from the perspective of both the producers and the consumers of metals and minerals. In the process, I’ll probably cover the management of price and currency risks, operational risks, and counterparty risks as well as the ways to mitigate them.
Let us know on!
Linkedin: Commodities People
Company: RJH Trading LTD
Dates employed: Nov 2004 – Present
Employment duration: 12 yrs 2 mos
Location: London, United Kingdom
Company: Macedonia Steel Ltd.
Dates employed: Aug 1993 – Nov 2004
Employment duration: 11 yrs 4 mos
Company: Zomet Trading Ltd.
Dates employed: Jan 1991 – May 1993
Employment duration: 2 yrs 5 mos
Dates employed: May 1985 – Jan 1991
Employment duration: 5 yrs 9 mos
Degree: Graduated Economist
Field of study: Economics
Dates attended: 1979 – 1983
High School: Orce Nikolov Skopje
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