Enrico Crovetto on Leading Spark Energy Resources SA and the Future of Raw Materials

• 16.05.2024

In a recent interview, Enrico Crovetto, Managing Director of Spark Energy Resources SA, shared insights into the company's core activities, market presence, and the broader industry outlook.

Spark Energy Resources is primarily focused on supplying raw materials to the steel industry, with metallurgical coke being the company's flagship product. They also provide coking coal, PCI (pulverized coal injection), anthracite, and steam coal, catering particularly to the sponge iron industry in India. The company has a global footprint with representative offices in Europe, Asia, and South America, positioning it as a significant market player across these regions.

Crovetto discussed the current performance and future outlook of the industry. He acknowledged a decline in the use of coal and coke in the European steel industry due to reduced steel production. However, he emphasized that this decline is less severe compared to the energy sector. The indispensable chemical and physical properties of these raw materials make them challenging to replace in traditional blast furnace steel production. Despite this, the industry is experiencing a downward trend driven by the move towards "Green Steel" production.

On a more positive note, Crovetto highlighted that the demand for metallurgical coke and other steel-related raw materials remains strong outside OECD countries. This demand is rising, evidenced by recent expansions in production capacity. He projected that the demand for carbon-related raw materials in both the power and steel sectors would continue to grow, especially in Asia.

Regarding the strategic advantages of operating from Lugano, Switzerland, Crovetto noted that while Switzerland might have lost some of its allure over the years, it remains a stable and attractive base for trading companies due to its access to the banking sector. He praised Lugano's strategic position and overall advantages, despite acknowledging that there is room for improvement in fiscal policies.

Crovetto also elaborated on his reasons for joining the Lugano Commodity Trading Association (LCTA). He views LCTA as an excellent networking platform, providing opportunities to meet new professionals from various industries and share diverse experiences. He believes that LCTA plays a crucial role in promoting Lugano as a significant trading hub, following in the footsteps of Zug and Geneva.

Overall, Enrico Crovetto's insights paint a picture of a resilient industry with evolving dynamics and underscore the strategic importance of Lugano as a hub for global trade in raw materials.