Japan’s Mitsui & Co is set to re-enter the global precious metals trading market after a nine-year hiatus, aiming to provide hedging solutions for clients. Key details include:
Market Re-entry: Mitsui plans to return to precious metals trading through its subsidiary, Mitsui Bussan Commodities Ltd, based in London.
Increased Liquidity: The company’s return is expected to inject additional liquidity into the global precious metals derivatives market, filling the gap left by other firms that exited.
Price Surge: The decision comes amid a significant rally in precious metals, with gold prices rising nearly 30% this year, driven by factors such as anticipated U.S. interest rate cuts and geopolitical tensions.
Current Trading Activities: Mitsui Bussan Commodities already trades energy and base metals derivatives and is exploring opportunities for price risk management in precious metals.
Historical Context: Mitsui originally began trading precious metals in 1970 but exited in 2015 due to falling commodity prices.