Dealers ready their resources for Asia commodities push

The bounce in the commodities sector following the financial crisis put a number of dealers on alert about money-making opportunities in Asia. Many leading dealers are amassing their resources in the region, particularly in the physical arena. But do they fully understand the risks? By Rachel Lomax

Commodities were the first and among the hardest-hit asset class during the global financial crisis. The nadir came in late 2008 when commodities prices slumped by between 60% and 70% of their levels in mid-2008, hurting dealers and end-users alike. But the markets have rebounded sharply since then. Standard & Poor’s GSCI index, a globally referenced composite benchmark of commodities prices, rose from 359 points at the beginning of 2009 to around 524 points at the end of the year – an increase