Alcoa Issues Statement on LME Board Decision
NEW YORK -- November 7, 2013
Alcoa (NYSE:AA) commends the London Metal Exchange (LME) for taking steps
today to create a more transparent marketplace, which Alcoa recommended and
industry participants broadly support. The immediate next step is for the LME
to provide a clear timeline in which to implement this change. Alcoa believes
this is key to ensuring a more transparent system which increases fairness and
improves market function.
Alcoa supports the LME’s intention to examine creating premium contracts,
which Alcoa recommended in its response to the LME’s proposed warehouse rule
changes. Premium contracts 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 is also supportive of the LME’s proposed
physical market committee, and welcomes the opportunity to participate on it.
Alcoa encourages the LME to focus on increasing confidence among market
participants through greater transparency and premium contracts, and cautions
against direct market intervention. We are further encouraged by the LME’s
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.
Alcoa is the world’s leading producer of primary and fabricated aluminum, as
well as the world’s largest miner of bauxite and refiner of alumina. In
addition to inventing the modern-day aluminum industry, Alcoa innovation has
been behind major milestones in the aerospace, automotive, packaging, building
and construction, commercial transportation, consumer electronics, and
industrial markets over the past 125 years. Among the solutions Alcoa markets
are flat-rolled products, hard alloy extrusions, and forgings, as well as
Alcoa® wheels, fastening systems, precision and investment castings, and
building systems in addition to its expertise in other light metals such as
titanium and nickel-based super alloys. Sustainability is an integral part of
Alcoa’s operating practices and the product design and engineering it provides
to customers. Alcoa has been a member of the Dow Jones Sustainability Index
for 12 consecutive years and approximately 75 percent of all of the aluminum
ever produced since 1888 is still in active use today. Alcoa employs
approximately 61,000 people in 30 countries across the world. For more
information, visit www.alcoa.com, follow @Alcoa on Twitter at
www.twitter.com/Alcoa and follow Alcoa on Facebook at www.facebook.com/Alcoa.
Kelly Pasterick, 212-836-2674
Monica Orbe, 212-836-2632
James Leviton, +44 (0) 7771 887977
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