Hope everyone is keeping safe and doing well. Where do I start? This sure has been a very interesting month. On one hand, we are witnessing the tragic and devastating consequences of geopolitical issues around the world; while on the other there is a fluctuation in the metals market, courtesy of the ‘wild metal- nickel breakdown’, directly impacting the main as well as allied sectors of oil & gas, pipeline & fittings among others.
As an organization, we hope for a quick and diplomatic end to this geopolitical disorder. Our focus remains on the safety and wellbeing of our colleagues; and in the meanwhile, we hope to continue in our pursuit of making PetroGas Piping, in lieu of such upheavals, a better and even more ‘Great Place to Work’.
We are a purpose-driven organization and our core values guide everything we do for our people and the communities in the markets we serve.
This past month, indeed, has magnified the weakest parts of the market. With the breakdown of Nickel trading, London Metal Exchange’s (LME) inability to react to the new trading reality is indicative of the tectonic upheaval playing out in the forum for global metals pricing. While the world discusses LME and its failed attempt followed by an even slower restart owing to its history of laissez-faire regulation; we must realize we are one world living on the principles of exchange and barter from one system to the other, from one partner to the other.
In this case, Nickel’s breakdown is intricately tied with the current geoplotical situations, with special concerns about the continued supply of Russian metal to the European physical and LME storage markets. In fact, the LME stated in its reports that this “geopolitical news flow” is one of the reasons for its decision to suspend the contract. However, this crisis was only the catalyst. The real stimulus of the ‘Wild Metal’ volatility has been around for more than a year– the Pandemic, which buckled the global supply chains like never before. For instance, Tin spreads had already gone stratospheric at the start of 2021, while Nickel turned wild last month and, in all likelihood, Zinc and Copper might follow the suit soon enough.
Nickel is an important metal in the pipeline, oil & gas and other industries. Their alloy helps provide a high mechanical strength, corrosion resistance, and pressure support and resists oxidation at elevated temperatures for fluid materials. However, keeping the economic, social, and geopolitical scenario in mind, we at PetroGas Piping continue to work from the grassroots level– providing a strong foundation to our partners with the right amount of flexibility, and options in product choices, pricing, and consultation services.
In tandem, we have a team of market research professionals gathering market insights and creating execution models to further bolster our partners. We are conducting portfolio and supplier reviews so we can meet their desired and required criteria; and in the future hope to continue with these supplies to the best of our ability in accordance with factors such as sanctions, logistics availability, and other key considerations.
PetroGas Piping provides essential tools and products for the global PVF prducts supported by strong supply chains. We believe it is our responsibility to do our part so people around the world, have access to the critical products they need to live.
Lets work and hope for a better future for everyone. That is the ethos that PetroGas Piping stands by.
Have a good month ahead.