By: AGBI

The trading arm of Saudi Aramco is reportedly looking to expand its presence in the metals industry, with a focus on copper.

Aramco Trading is in the process of hiring traders to develop a copper trading book, Bloomberg reported. 

The oil giant’s unit had already hired Jack Gebler, a former Trafigura Group battery metals trader.

As part of its copper strategy, Aramco Trading may also make prepayments to mines and smelters to secure positions in the market. It currently operates out of London, Houston and Singapore, but is now targeting local hires in Jeddah.

The move aligns with the kingdom’s growth plans in the metals sector. Saudi-listed Maaden operates the world’s largest aluminum smelter outside China and continues to develop its domestic operations. The Public Investment Fund (PIF) owns 63.78 percent of Maaden.

Additionally, Manara Minerals — a joint venture between Maaden and PIF – holds a stake in Vale Base Metals and is tasked with acquiring global mining assets.

Energy trading companies such as Mercuria Energy Group, Vitol Group, Gunvor Group and PetroChina Company have already ventured into metals over the past year, the report said.  

Copper is poised to hit $12,000 per tonne after Federal Reserve Chair Jerome Powell flagged another US rate cut this month, Bloomberg reported.

Copper was trading 1.1 percent higher at $10,698 a tonne on the London Metal Exchange on Wednesday afternoon.  

The metal is often viewed as a bellwether for the global economy, given its widespread industrial use.