INTERVIEW: LME must boost confidence in price discovery process, says Alcoa ceo

Aluminium market transparency has been a hot topic in producer circles over the past year, as concerns over confidence in the London Metal Exchange’s price-discovery processes were raised, the ceo of Alcoa told Metal Bulletin.

Klaus Kleinfeld said in an interview that the LME needs to increase its levels of transparency to reflect the changing nature of investors in the market. “We looked at what other exchanges do, and the standard today is the US CFTC’s Commitment of Traders reports, which break down between financial and non-financial investor. We have to adapt these standards sooner rather than later to ensure every industry player continues to have comfort in how the price is found,” Kleinfeld added. The company has this week filed a statement for the record to the same Senate subcommittee of the US Banking, Housing & Urban Affairs committee that met in Washington, DC on Tuesday July 23 to discuss physical commodities. Alcoa has also been debating the matter with the LME for over a year, initially raising questions over transparency as a result of what it deemed to be the substantial increase in...


Andrea Hotter

July 25, 2013

13:00 GMT

New York