Scientific scope

Commodity trading and management of associated risks have been gaining dramatically in volume, importance, and complexity over the past years. This is due to increased demand and to partial exhaustion of resources, as well as to a stronger influence of technological, political, social and environmental factors.

Pricing of commodities, management of revenue and risk have to be based on a better understanding of the processes governing the markets. The network of interacting factors have to be analyzed including supply and demand, the intrinsic dependence between different markets, e.g. between fuel and power markets, the technological processes, or transportation and storage. Interdependence is growing on an international level and global aspects are becoming more and more important. Side conditions and constraints to production and trading set by international relations and agreements are strongly influencing the dynamics of markets. E.g. the regulation of carbon emissions has changed the development of industrial production, while the trading of carbon emission permits is now an important market sector influencing the policies of market participants and their competitiveness.

In order to overcome the challenges posed by commodity markets, it is necessary to promote research on commodities and to strengthen the interaction between academia and industry. Mathematical modeling and simulation have to be developed as rational and robust tools supporting necessary decision processes and economical and technological actions.

Two internationally leading companies, BASF and Lufthansa are co-organizing and supporting this symposium. For both industrial partners management and pricing of commodities and derivatives are highly important.