25 years in commodities trading - the TRADIUM success story

With a quarter of a century of experience in the commodities market, TRADIUM has not only demonstrated consistency, but also the ability to turn challenges into opportunities - a story told by founder Matthias Rüth himself.

TRADIUM has been in the raw materials business for a quarter of a century. In an industry that is considered to be challenging, the company has persistently and tenaciously built up its position. To mark this milestone, we spoke to founder and Managing Director Matthias Rüth about the origins of TRADIUM, its fundamental values and the unexpected twists and turns that have shaped the company.

What was the trigger for founding TRADIUM?
Matthias Rüth: In the 1990s, a major change in the market could be observed. Many stock corporations that traded in industrial metals saw a shift towards management based on key figures. The profitability of buying and selling raw materials was being reassessed. At the time, I was working as an employee in one of these companies and was able to follow the changes directly. I saw it as an opportunity to set up my own company. Unlike the established market players, we at TRADIUM wanted to be open to business of all sizes and in all market segments. Our approach was characterised by flexibility, so we wanted to serve large orders and series deliveries as well as smaller requests and niche products. Supporting companies in the development of new products was also important to us, for example by providing raw material samples.

A look at TRADIUM's founding history shows that you have understood how to utilise change as an opportunity. How has TRADIUM managed to hold its own in a volatile market environment and in the midst of geopolitical tensions?
Matthias Rüth: The uncertainties in the global economy and politics have an undeniable impact on global trade in strategic metals. We are experiencing challenges such as export bans and export controls, particularly in countries with strong raw material resources such as China and Russia. Our broadly diversified partner network and our strategic stockholding have enabled us to react flexibly to changes in the markets time and again. For example, despite the China's trade restrictions on certain technology metals in summer 2023 guarantee a continuous supply to our customers.

You have explained to us how you deal with external risks and the harsh geopolitical realities. Now let's talk about TRADIUM's inner strengths and values: How do you as a company maintain long-term partnerships in a volatile market environment?
Matthias Rüth: Since day one, TRADIUM has built on a solid foundation of reliability and a willingness to co-operate. We focus on the long term and trust in our partnerships, and we always honour agreements, whether written or verbal. We live by these virtues. We have earned the status of exclusive producer representative for Gallium from the renowned Chinese manufacturer Beijing Jiya. Regardless of how supply and demand or the price have developed, we have maintained our cooperation with these companies over the years. This has been seen and recognised by all other partners and suppliers. Our reliability is also honoured by industrial customers. TRADIUM is a long-standing series supplier for companies in many demanding sectors such as aerospace, automotive and healthcare.

Now we come to the most exciting part: what unexpected opportunities have arisen for TRADIUM over the past 25 years and how have they been utilised?
Matthias Rüth: In 25 years of TRADIUM, a number of interesting opportunities have presented themselves to us and we have seized them with determination. One particularly notable example is the development of our private customer segment as the second pillar of our business model. In 2009/2010, employees from the raw materials processing industry and the technology sector asked us whether industrial metals were available as a private investment alternative to gold and silver. This opportunity, which was based on external enquiries, opened up a whole new market for us. We now offer 16 Metals as alternative, strategic tangible assets to.