Claude Dauphin, founder of Trafigura, a Swiss trading house, said on Tuesday after his firm reported an increase in its core earnings that the lower commodities prices will definitely improve the global economy. He also stated that China will remain as a bright spot for raw materials despite the fact that it its recent economic data shows to be weak. He also added that it is not just the low commodities prices that will act as boon, it also includes low financing and freight costs.
According to Dauphin, the founder of the largest commodities traders in the whole wide world, his firm was wrapped from the effect of sharp price fluctuations simply because it safeguards itself from possible price risks. However, he emphasized that they are not indifferent to the advantages of declining prices for growth.
He revealed that large scale investments boosted the confidence of the firm in terms of its outlook for lower commodities prices as a counterpart to the shadow that has become fashionable to express.
According to him, whatever the data shows and whatever the short-term numbers imply, China still continues to be an important growth factor in markets contrary to liquefied natural gas, coal and oil.