NEW YORK Alcoa
Inc. called on the London Metal Exchange to provide a clear
time line in which it plans to implement changes to create a
more transparent marketplace.
exchange for taking steps today to introduce transparency
through a Commitments of Traders style report, Pittsburgh-based
Alcoa said it would "increase fairness and improve market
The company also said
it supports the LMEs intention to examine creating
premium contracts (amm.com, Nov. 7), which Alcoa
recommended in its response to the LMEs proposed
warehouse rule changes.
would provide market participants the ability to hedge exposure
to the all-in price. We look forward to working with the LME to
develop these contracts," Alcoa said.
The aluminum producer
also is supportive of the LMEs proposed physical market
The LME needs to
"focus on increasing confidence among market participants
through greater transparency and premium contracts, and
cautions against direct market intervention," the company,
which has been a vocal critic of the LMEs planned
warehouse rule changes, said.
"We are further
encouraged by the LMEs intention to closely monitor the
consequences of its newly adopted rules. Alcoa remains
committed to continuing to work constructively with the LME to
drive improvements in the marketplace," it added.