Upstream, Midstream and Downstream
Some companies active in trading participate in the production of commodities (upstream), in transportation and storage (midstream), while others are also participating in processing material into final products, or even retailing (downstream).
Commodity trading companies are typically viewed as intermediaries between the producers of commodities, those who process commodities (such as refineries and smelters) and other traders and end-users (e.g. manufacturers, wholesalers) - see Simplified Commodity Trading Supply Chain graphic below.
Sector Actors
The sector works closely with a broad range of actors, from those directly involved in commodity production (a number of traders directly pursue extractive and production or agricultural activities) to firms that transport commodities to end users (see box).
The commodity trading sector also works closely with actors who support their activities, including financial institutions, insurance companies, inspection firms, certification providers and others, for example transportation and storage providers.
