The door closes on commodities

What a difference a year makes. In January 2008, we reported on soaring commodity prices and a correspondingly red-hot job market. Now banking job opportunities in commodities are looking just as scant as those in debt and equity.
ìThere is uncertainty in regards particularly to mineral sales and therefore no accurate predictions as to forward long-contracts. The jobs market is sliding too. Employment is flat,î says Warren Price, managing director, Select Personnel.

William Invine, Asia-Pacific commodities headhunter at Tardis Group, tells eFinancialCareers that most of the hiring will happen in the trading houses, not the banks. ìAlthough some commodities teams in the banking sector are performing well, they will find it difficult to have headcount approved as a result of the current climate,î he adds.

Redundancies in the sector have at least been comparatively low, says Price. Invine adds that any layoffs have mainly been at international banks affected by the sub-prime crisis.

ìThese cutbacks have been most severe in organisations where commodities has not been a core business area and the banks have made a decision to slim down and focus on where they have the greatest knowledge,î says Invine.
And the current tight job market is not a happy one for junior candidates – experience and contacts are what count. Invine explains: ìThe banks and trading houses want people to hit the ground running and add value to the bottom line from day one, thus making it difficult for people to move into commodities from other asset classes.î

Environmental markets might provide a glimmer of hiring hope later this year. ìWe expect to see a growing interest in the environmental markets across Asia-Pacific both in banking (carbon and emissions trading) and non banking (renewable energy firms),î adds Invine.