Trafigura in Talks With China’s ITG to Form Trading Venture

Commodity trading house Trafigura Group is in talks with Chinese supply chain conglomerate Xiamen ITG Group to form a joint venture to trade raw materials and finance commodity deals, according to people familiar with the matter.

The venture is being set up at a time when competition is heating up among traders for lucrative financing deals with commodity producers, with margins from simply buying, transporting and selling resources like oil, gas and metals expected to tighten.