20 years strong: CRU charts course for the future

Founded in 1969 in London, over the past 50 years CRU has advised global clients in the metals, mining, and fertiliser industries, providing unrivalled market intelligence, data, price subscription services, and consultancy services. Fast forward to March 2024, the CRU China team became the second biggest of CRU’s offices worldwide and celebrated its 20-year anniversary in Shanghai on the Huangpu River.

CRU China’s story began in 2004, when the office was established under a “launchpad” incubator scheme of the CBBC, and a year later, the representative office was registered. CRU Beijing was legally inaugurated as a Wholly Foreign Owned Enterprise (WFOE) in 2017, solidifying its official foothold in China. Now, the team has 50 experts in the Beijing and Shanghai offices and more than 100 clients in the country, signifying its rapid expansion and growing credibility in the Chinese market.

When asked about the significance of the Chinese market to CRU, John Johnson, CRU China CEO, said, “China is at a stage where it accounts for close to 50% of demand or supply in many commodity markets. That’s why it’s important to be here.” This staggering global market share was even accelerated by COVID-19, when a commodity boom followed the supply chain shortages and bottlenecks, which became “an interesting time for CRU,” added Johnson.

Bridging the Gap: CRU’s Unique and Purpose-Driven Solutions

CRU’s dedication to comprehensive market analysis and tailored advisory services has made it a go-to partner for many Chinese companies. Renowned for its objective and independent insights, CRU helps clients navigate the complexities of the metals, mining, and fertilizer industries.

“Our independence and objectivity are crucial for our clients,” said Johnson. “We provide honest, objective advice, sometimes not to proceed with certain projects, which helps us maintain our credibility and trust with clients.” One project that stood out involved CRU providing a lender’s report for a downstream metals project in the Middle East, facilitating negotiations between Chinese investors and a Middle Eastern bank to secure financing. This example highlights CRU’s ability to bridge international gaps and support Chinese companies in their global ventures.

Leading the Charge: Sustainability at the Forefront

CRU is at the forefront of sustainability, with a strong focus on decarbonisation. Their Emission Analysis Tool measures CO2 footprints for thousands of global assets, helping Chinese steel mills and other clients track and reduce emissions. CRU also advises on sustainable business practices, assisting companies in sourcing low-carbon materials and developing decarbonisation strategies.

“Metals are a large contributor to carbon emissions, and it’s vital to have accurate measurements,” noted Johnson. “Our tool helps clients benchmark their progress and compare it with industry standards.” CRU’s work in promoting ‘green premiums’ in metals further underscores its commitment to helping industries transition to cleaner energy and more sustainable practices. In one notable case, CRU supported Chinese metals producers entering the Indonesian market for battery metals, providing crucial analysis during volatile market conditions.

CRU China has faced its share of challenges over the past two decades, including navigating the aftermath of the Sichuan earthquake and adapting to the COVID-19 pandemic. Following the Wenchuan earthquake in 2008, CRU’s chairman, Robert Perlman, generously donated to build a Hope Classroom for students affected by the disaster, showcasing the company’s commitment to social responsibility.

During the COVID-19 pandemic, CRU adapted by maintaining regular services and communications with clients despite global disruptions. The team’s resilience during this period highlighted their dedication to client service and internal support, including providing home office setups and food delivery services during lockdowns. These efforts ensured that CRU continued to thrive and support their clients through the unprecedented challenges.

CRU’s Next 20 Years

As CRU China celebrates its 20th anniversary, the focus shifts to the future. Under the leadership of Chaosheng Tang, the company plans to expand its footprint in China and strengthen its global presence. Talent development remains a priority, with robust internship programs and flexible work arrangements ensuring a steady influx of new talent. “We have the best people in the metals industry working with us,” Johnson remarked. “Our goal is to keep nurturing this talent and expanding our expertise.”

CRU will continue to support critical minerals cooperation and guide Chinese companies through international investments, aligning with initiatives like the Belt and Road. In sustainability, CRU aims to expand its consulting services in new energy sectors, including electric vehicles and renewable energy.

CRU’s journey in China over the past two decades has been marked by significant achievements and commitment to excellence. As it looks to the future, CRU is poised to continue its legacy of innovation, sustainability, and talent development, ensuring ongoing success in the dynamic Chinese market.