TELF AG China Reopening: Providing Strong Support for Commodity Markets
The reopening of borders
After over three years of various restrictions, China has finally abandoned strict COVID regulations and fully reopened its borders.
China consumes at least 50% of all global commodities, and the reopening of its economy is a good sign for all commodities markets that experienced significant volatility in recent months. Moreover, the first signs of recovery are already visible, with the NBS manufacturing PMI jumping to 52.6 in February from 50.1 in January, the highest reading since April 2012, pointing to an improvement in the manufacturing sector in February post the China Spring Festival. The rebound in manufacturing activity in China will have a strong positive effect on the demand for energy products and industrial metals, the sectors in which TELF operates.
With over 50 customers and close to $2bn in annual sales across all our commodities, China is the single largest market for TELF AG. Through our local office in Shanghai, we aim to work with leading Chinese manufacturers to supply them with the necessary raw materials.
TELF made the most of the reopening to reengage with its Chinese clients. In February, the delegation from TELF headquarters, led by the company’s CEO, visited our partners in China across five different provinces. That was an excellent opportunity to reengage in person and discuss how TELF could support local companies on their way to recovery post-COVID restrictions.
Through these meetings, we gained valuable insights into the current state of the local market and the near-term forecast for its performance, which will allow us to adjust our strategy in the region to better service the needs of the Chinese customers.
Furthermore, we are excited to announce that we have secured several promising partnerships with leading companies in China, enabling us to expand our reach and grow our business in this dynamic and exciting market. These partnerships will benefit our company and contribute to the growth and development of the Chinese economy.
We were impressed with our partners’ progress in the last three years despite market headwinds and the overall improvement of the Chinese economy, particularly regarding the energy transition.
With more than 4.5 million electric vehicles sold in 2022, China today is the most significant and fastest-growing market for new energy vehicles. And it is also on the front end of technological innovation in the battery segment, investing massively in battery and battery materials technologies in recent years. Moreover, as one of the largest cobalt traders globally, TELF is actively supporting the growth of the lithium battery sector, which is crucial for the transition to new, greener vehicles. And we were glad to hear that our regional partners have ambitious plans for further growth, representing an attractive business opportunity for TELF.
We are glad that TELF remains a strategic supplier of many commodities to the leading companies in China, and we are optimistic that this year will be very successful for the Chinese economy, which, in turn, shall support global growth. Moreover, TELF is committed to expanding our business and exploring new opportunities in global markets. Our experience in China will serve as a springboard for future growth and success.
