Base metals house of the year: Marex

If there were ever an event to immediately put Energy Risk’s choice of award winner to the test, it would surely be US president Donald Trump’s April 2 ‘Liberation Day’ tariffs. The announcement of a baseline 10% tariff on virtually all US imports, plus reciprocal tariffs of 10–50% on many countries, sent global markets spiralling.

Metals markets were particularly roiled as firms positioned themselves ahead of the announcement and then reacted to the flurry of reprisals, reversals and temporary pauses that followed. Copper, although exempt from the reciprocal tariffs, registered record volatility on expectations that it would be next. As firms rushed to build copper stocks in the US and adjusted financial positions, the US Comex and LME copper futures spread widened to a record high of 16% in March, well above the five-year average spread of 0.5%. Having reached a high of $5.22 a pound on March 26, Comex copper had lost 22% by April 8, while LME copper fell $1,443 a tonne (/tonne), or 14%, between March 25 and April 9. 

While some firms retreated from the market turmoil, Energy Risk’s 2025 Base metals house of the year – Marex – showed itself to be a worthy winner, maintaining a continuous market presence amid whipsawing prices, executing more than three times its usual daily average.

“As a market maker, it’s our responsibility to provide liquidity when clients need it most,” comments Christian Lusted, managing director in metals sales, Emea, at Marex. “We aim to give clients the confidence that, whether they want to take on new risks or exit existing positions, they can rely on Marex to get it done. Partnership is at the heart of what we do.”

While the scale of trading on Liberation Day was exceptional, Lusted also points to other recent periods of heightened volatility where Marex continued to provide liquidity while competitors stepped back. He cites last year’s LME copper rally, when three-month futures prices surged 25% from $8,800/tonne at the beginning of the year to over $11,000/tonne by the end of May. This was driven by anticipated demand from the clean energy transition, constraints caused by supply disruptions and a lack of capital investment among producers. The rally left some of these producers, who had hedged forward sales, facing hefty margin calls and limited flexibility to adjust their positions, despite strong underlying fundamentals, he says.

“We were prepared to extend margin financing to the market, backed by robust internal risk and financing metrics,” Lusted says. “Many clients turned to us for additional liquidity, which we were able to provide, allowing them to capitalise on market movements and implement effective hedges.”

Lusted emphasises the company’s diverse client base, which spans four key segments: corporate clients (both producers and consumers of metals) looking to mitigate risk; institutional investors seeking exposure to alternative asset classes; banks for whom Marex acts as an intermediary; and commodity traders who depend on the company for liquidity.

Marex’s IPO on Nasdaq last year has further elevated its profile. “Being publicly listed also adds an extra layer of confidence for our clients,” Lusted notes, while underscoring that Marex’s rigorous risk controls remain unchanged.

Marex provides access to base, battery, recycled, ferrous and precious metals. The firm’s ‘high-touch, one-stop-shop’ service model is supported by a global team of around 100 metals specialists, up from 55 in 2020. “That ensures clients receive tailored solutions, including direct market access, risk management support and guidance through evolving regulatory landscapes,” Lusted adds. This is supported by NEON, the company’s proprietary online trading platform for metals, he says.

Lusted refrains from making predictions about base metals prices or the outcome of the US administration’s tariff policies. However, he expects continued volatility and the potential for upside surprises in the coming months. “The new administration has presented both challenges and opportunities. While tariffs … remain a concern, we’re hopeful for progress on other geopolitical fronts. Whatever comes next, we’re ready to help our clients navigate the market.”