Russia's FAS, Industry and Trade Ministry propose establishing mandatory exchange trading standard for aluminum of no less than 10% - draft

MOSCOW. May 7 (Interfax) - The Federal Antimonopoly Service (FAS) and the Industry and Trade Ministry have developed a draft joint order stipulating that no less than 10% of the monthly production of primary aluminum must be sold on exchange trading.

The text of the document has been posted on regulation.gov.ru.

"A corridor for exchange prices for aluminum is stipulated to form a price indicator on the Russian market, taking into account its characteristics. They will be calculated within the range between the quotes of specialized commodity exchanges for metals. The development of exchange trading will make it possible to create an economically justified domestic indicator of the cost of aluminum and provide an additional sales channel. It will also contribute to the formation of uniform conditions for concluding transactions for all participants in the aluminum market," the FAS's press service said.

The introduction of the exchange trading standard aims to create "transparent and non-discriminatory conditions for the circulation of primary aluminum on the domestic market, increasing product accessibility for Russian consumers, and creating market pricing benchmarks," the Industry and Trade Ministry said.

It is assumed that this will make it possible to form a national exchange indicator for primary aluminum.