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On the physical side, Kareem Barbir is building out the platform alongside Paul Crone and Brandon Rust, who lead financial trading.
It is a team that blends hedge-fund discipline with industrial depth and state backing strong enough to rival the banks that once dominated the trade, Barbir told Fastmarkets.
“Energy and metals are increasingly intertwined,” he said in an interview. “Whether it’s transition metals for batteries or industrial materials for energy infrastructure, the same principles apply: long-term relationships, warehousing big exposures and having a strategic, patient approach,” he added.
According to Barbir, SEFE’s metals expansion is part of a broader ambition. He said having a metals division is critical to creating a full spectrum offering for clients.
“Energy and metals are merging in the context of the new energy story. Psychologically, the way you succeed in LNG (liquefied natural gas) is very similar to metals: you need a long-term vision and the ability to manage large exposures responsibly,” he added.
The Berlin, Germany-headquartered energy giant owns significant gas pipeline networks in Europe and operates around 25% of Germany’s total gas storage capacity. Barbir said the metals expansion will largely remain asset-light, though SEFE is open to strategic investments in warehousing or infrastructure if the right opportunity arises.
“We’ve been given a blank canvas,” he said. “We want to build the business thoughtfully, hire carefully and solve real problems for clients rather than take physical positions for their own sake,” he noted.
“The two adjectives that have constantly been present in terms of how we will approach the build out are: measured and methodical. That’s how we will approach all aspects of the business, which also conforms with the overall culture at SEFE,” he added.
According to Barbir – who began his career at Trafigura and has also worked at Nyrstar, Noble Group and Concord – government backing gives SEFE a distinctive edge. In the past decade, banks that once dominated commodities trading have pulled back due to tighter regulations and reduced risk appetite.
“Who would you rather be backstopped by – the German government or various banks?” Barbir said. “It gives us the flexibility to hold risk longer, offer more competitive credit, and tackle bottlenecks others can’t. We can structure deals differently and take a longer-term view,” he noted.
Those bottlenecks include energy supply as a critical constraint for mining and metals production, Barbir told Fastmarkets. “One of the biggest fundamental issues in metals is unreliable, high-cost power,” he said, adding that SEFE aims to offer price-risk management solutions that help clients navigate this challenge.
He identified mine finance as another bottleneck, with traditional traders often approaching prepayment or project financing rigidly. Because of this, certain flows that ‘tick the boxes’ are overly competitive where others are neglected.
“Antimony, zinc, nickel, magnesium – these markets are essential but often overlooked by many banks and trading houses,” Barbir said. “We’re flexible, can look at early-stage, and are willing to structure deals differently to help projects get to production. That creates opportunities for both us and our clients.”
The company’s hiring approach is similarly methodical. New team members include an Oxford-educated graduate Andy Lin in London and former Macquarie trader Jiadong Wang in Singapore, with plans to expand gradually over the next year.
“We’re taking a sensible approach,” Barbir said. “We start with flagship deals, build the team around them, and grow headcount slowly but sustainably.”
With the expertise of Crone and Rust, the financial team will also run a proprietary trading book alongside its physical operations. “Insights from physical flows and deals will aid and enhance paper risk taking,” Barbir said.
Low-carbon and environmental, social and governance (ESG) considerations are integrated where economically sensible. Barbir noted that environmentally responsible facilities often offer robust long-term returns.
“We’re a for-profit business, but there’s a strong economic case for looking at ESG in certain deals,” he said. “Where it makes sense — better water management, lower emissions — it also makes financial sense.”
The German government’s continued support is not just financial, according to Barbir.
“Germany is Europe’s biggest industrial producer – it makes sense to have government backing for material access and infrastructure support,” he said. “But this is a two-way street – and it is not enough to be simply deploying balance sheet. There’s another untapped element in terms of relationships, industrial insight, and risk capacity,” he noted.
Barbir said that SEFE’s ambition reflects a broader trend of government-backed participants entering commodities markets.
“SEFE is new to metals, but there is a clear appetite for risk and the track record to build a sustainable business. We’re here to unlock bottlenecks, solve client problems and provide stability,” he added.
Barbir sees SEFE’s approach as a model for a new era of commodities trading – measured, patient and anchored in long-term relationships.
“Ultimately, we’re not just filling a gap left by banks,” he said. “We’re building a sustainable business that solves real problems, operates without silos, and is backed by a team that knows how to manage risk at scale and a government that gives us credibility few others can match,” he added.
In Hotter Commodities, special correspondent Andrea Hotter covers some of the biggest stories impacting the natural resources sector. Read more coverage on our dedicated Hotter Commodities page here.