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(AMM) Rio Tinto Alcan unveils new margin policy for some customers
March 12, 2010 - 21:01 GMT
Location:
TUCSON, Ariz.
KEYWORDS:
Rio Tinto Alcan
,
fixed forward pricing
Customers with less-than-robust financial positions seeking fixed-forward pricing (FFP) with Rio Tinto Alcan may soon be required to post an initial margin, according to a company executive.
The new policy, which customers can expect to hear more about in the next few weeks, would protect the aluminum heavyweight from widespread losses in the case of a pricing drop-off, said Gordon Hamilton, vice president of metal management, sales and marketing of primary metal.
"Rio Tinto Alcan is not about to remove FFP positions, but what I hope you will understand is we have to make sure the people we do these transactions with are robust enough to wear a .?.?. $300-, $400-, $500-a-tonne price drop," Hamilton said in his keynote address at the Aluminum Extruders Council's...
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Euromoney Institutional Investor PLC.
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