Sumitomo Corporation, Sumitomo Corporation of America and Sumitomo Europe establish new commodity trading company, Sumitomo Corporation Global Commodities (SCGC)
Expanding on their Tokyo-based commodity trading activities, SC along with SCOA and SCEU have established a UK based company to expand their commodity trading in Europe and North America.
The new company, Sumitomo Corporation Global Commodities Limited, will trade in a variety of derivative financial products for commodities like base metals, precious metals, energy, financial futures and weather/CO2 emissions. Previously, SCEU had a trading desk where only precious metals were traded.
Since its establishment in 2000, Sumitomo Corporation's Commodity Business Department has been expanding operations through listed markets such as the NYMEX / Tokyo commodity exchange and also in the OTC (over the counter) markets where they trade directly with other traders and customers.
Sumitomo Corporation Global Commodities will seek to broaden the range of commodities to trade and unite the different organizations and markets on a more global basis which should help in setting up unified trading and marketing strategies in the European and North American markets.
The new company's main trading desk is in London and will begin trading in base metals and energy. Having SC as the major share holder will help the company to expand thier risk exposure in the marketplace. SCGC are also looking to benefit from SC's market knowledge and information in the Asian commodity markets.
Recently, SCOA has been developing customer related OTC business with potential clients in the North American region as an agent of SC Tokyo. The SCGC NY desk will continue to develop and market OTC derivatives for SCOA, Sumito Canada and Sumitomo Mexico business groups through the new London trading desk.
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