​What people are talking about

Macquarie posted another record annual profit on Friday, primarily driven by a strong performance from the CGM division, as more customers hedged against volatile energy markets. The Head of Commodities; Nick O’Kane was rewarded with compensation of USD 39 million, eclipsing that of the bank CEO.

Chinese futures markets in niche commodities have seen large drops in prices, causing more concern in the market, corn starch, styrene, glass, and pulp futures have all seen a fall despite the positive sentiment from China’s reopening.

China’s raw materials producers are at the forefront of falling industrial profits as poor demand and price deflation tear into margins at steel mills, metals smelters, chemicals firms, and coal miners. This drop is counter to usual trends and thus worrying for producers.

The setup of commodities traders in Dubai continues, with Hartree, Freepoint, and Mercuria all making senior hires and moving senior executives to the region.

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What we are currently working on

• Base Metals Derivatives Trader, Singapore and Shanghai
• Iron Ore Derivatives Trader, Singapore
• General Manager, Thermal Coal and Coking Coal, Singapore
• Thermal Coal Strategist / Analyst, Shanghai
• Metals Concentrates Trader, Shanghai
• Wheat Trader, Singapore
• Edible Nuts Trader, Singapore, Dubai
• Corn and Byproducts Trader, Malaysia, Regional
• Grains and Oilseeds Trader, Singapore
• Dairy / Dairy by products / Specialty Dairy traders, Singapore
• Grains and Oilseeds, Singapore
• Base Metal Analyst, Shanghai ​

If you are interested in any of these roles, please reach out to us via the contact details at the end of this newsletter. Alternatively, click here for more jobs.

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Bonus Season 2023 – ‘the great retention’?

​Bonus Season – otherwise known in recruitment parlance as the ‘great resignation period’, is usually synonymous with a flood of talent movement. It’s an annual pattern we observe where once employees have been paid cash in hand and free of any financial clawbacks from their respective employers, this presents the most opportune time for those considering jumping ship. As such, it’s no surprise that during this period many companies tend to be on edge about any possible flight risks lurking within their ranks after bonuses have been paid.

This looming concern has been exacerbated in recent times due to broader themes i.e., rising costs of living, inflation, and micro themes such as the highly competitive employment market particularly in the high-demand areas of low carbon fuels cross-commodity derivatives trading, and quantitative analytics. In addition, the commodities super cycle witnessed over the past two years has opened the floodgates to the new kids on the block – the hedge funds. Offering the most competitive financial premiums for traders and quantitative strategists/analysts/developers, some of whom offer high-flying derivative trading talent, in some cases up to 25% of book after costs, let’s also not forget the sign-ons! Even some of the most competitive paymasters have found it difficult to retain their top performers under such circumstances.

However, 2023 presents a very different reality. Most leading energy institutions posted their best financial results on record for last year, Aramco an eyewatering US$161Bn, ExxonMobil US$56Bn, Shell US$40Bn, BP US$ 28Bn, Vitol US$ 15Bn, and so on. With the surplus cash, companies are now even more enabled to invest in employee retention schemes with many rebuffing their remuneration structures to maintain competitiveness. This trend has been particularly common amongst the Oil Majors, particularly BP, Chevron, Shell, and Total, who have deployed a wide range of mechanisms to retain their top performers including promotions, salary increases, further defined profit share correlated to individual performance, etc.

With all the above said, we expect low attrition, particularly in the front office, across the board post-bonus season compared to previous years. Now more than ever, companies are more enabled and subsequently under heightened pressure after 2022 financial performance to commensurately reward their key performers, in doing so narrowing the perceived push factors, whether they be financial, or career fulfilment related.

​Albeit a very hot hiring market with plenty of external hiring activity, where we observe companies’ successes in securing talent is in paying just as much attention to their employee value proposition in addition to offering competitive remuneration to captivate the passive talent pool.

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Market Moves

• Huang Chao Chen has joined Yongtai Energy as Sales Director, previously with Vale.
• Steve Cai has joined GMR in Shanghai as Senior Trader, previously with China Forestry.
• Henry Kuan joined Frey as a Junior Trader, previously with Agrocorp.
• Kedar Modi has joined Netbulk as Head Trader, previously with WM Metals and Alloys.
• Kevin Mao has joined Morgan Stanley as a Commodity Derivatives Trader, previously with Freepoint.
• Dan Rose has joined MCM Partners in Hong Kong as Managing Director, Head of Natural Resources, previously with VTB.

Alex Kerr

Director | Partner

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+65 3165 0710

alex@aurexgroup.com

EA 18S9493 | R1328009