Mary Jane Saunders, the trade association’s General Counsel, said in a letter to the price reporting agency on May 18 that the proposal was “inconsistent with free market principles, and both potentially harmful to the market and likely illegal.”
The association, which represents brewers, beer importers and industry suppliers, said Platts had reportedly announced an extension to the consultation period for the proposed changes on May 4 to prevent the duty-unpaid premium from falling into negative territory in light of continued declines in the US Midwest duty-paid premium.
“The equilibrium market price for aluminium is falling because the quantity supplied currently exceeds the quantity demanded. There is a worldwide surplus and falling prices are the proper economic response,” Saunders said in the letter.
“A price floor arbitrarily set above the market...