Raw Materials Crisis: TRADIUM to Help Stockpile Strategic Metals

Several German governmental institutions advise processing companies to build up stocks of raw materials. Frankfurt-based TRADIUM GmbH can supply them with metals and rare earths in a wide product range and with short delivery times.

One of Europe’s renowned suppliers of raw materials and metals, TRADIUM GmbH offers the processing industry a reliable supply of critical raw materials. The order books of most companies are full, but in many cases, industrial raw materials such as technology metals, rare earths or platinum metals are lacking. Numerous suppliers, through whom industrial customers procure their materials on a demand-oriented basis, have empty warehouses. TRADIUM, on the other hand, can supply a wide range of critical raw materials in industrial quality and quantities at short notice. The company is also the exclusive producer representative in Europe for numerous strategic metals.

Companies Suffer from Supply Bottlenecks and Shortages of Raw Materials

The current shortage of industrial raw and input materials is challenging many manufacturing companies. According to the German Ifo Institute, 3 out of 4 companies complained of shortages and problems in the procurement of materials in June 2022. Besides price increases because of the Ukraine war, the reasons include supply problems due to recent lockdowns in China. China holds a monopoly on critical raw materials such as rare earths and technology metals, which are used in numerous future technologies such as solar panels. Disruptions or failures in their extraction or shipment quickly affect the entire raw materials market. The Ifo Institute, therefore, sees an urgent need for action. After all, orders worth 100 billion euros are waiting to be executed in the German economy, according to Institute for the World Economy (IfW) Kiel.

Increased Stockpiling as a Strategic Recommendation from State Authorities

Companies have various options to manage the supply of raw materials and keep their own flow of goods running. In a position paper published on July 6, 2022 (in German), the German Federal Institute for Geosciences and Natural Resources (BGR) and the German Natural Resources Research Network (GERRI) advocate increasing stockpiling and keeping inventories in reserve for crises. The German Raw Materials Agency also advises this strategy in its latest study from May 2022 (in German), which was prepared by the management consultancy PWC: In addition to diversifying suppliers and setting up long-term framework agreements, stockpiling is also essential. The latter allows production to continue even during unforeseen unfavorable developments in the raw materials market.

Matthias Rüth, Managing Director of TRADIUM: “In light of the difficult procurement of metal raw materials, more and more companies are seeking to change their stock keeping. They plan to stock up their inventories for emergencies to make industrial production processes less dependent on just-in-time deliveries. TRADIUM can help in stockpiling with Strategic Metals. Thanks to long-standing business relationships with worldwide producers, forward-looking raw material procurement and extensive storage capabilities, we offer security of supply.”

Over 20 Business Critical Raw Materials Available from Frankfurt on Main

TRADIUM offers the necessary raw material supply for the mentioned strategy of increased stockpiling. Europe’s leading supplier of technology metals and rare earths has one of the largest inventories of strategic metals in Europe. This comprises over 20 metal raw materials in various delivery forms and qualities. These include:

Technology metals such as gallium, germanium, hafnium, indium, rhenium
Precious metals such as gold, iridium, palladium, rhodium, ruthenium, silver
Rare earths in oxide form such as dysprosium, neodymium, praseodymium, terbium, yttrium

TRADIUM also takes care of the processing company’s storage of the industrial material. In its own high-security warehouse in Frankfurt on Main, the raw materials can be stored professionally and safely until they are picked up.

Photo credits for the preview image: TRADIUM GmbH, Mirco Lilge