FAS: OVER 340 THOUSAND TONS OF COAL WERE SOLD IN THE FIRST YEAR OF EXCHANGE TRADING

The first deals were concluded on February 10, 2023

The development of coal exchange trading is provided by the National Competition Development Plan for 2021-2025. In November 2022, a joint order on establishment of a minimum standard for sales of thermal coal grades D and DG at stock exchanges was registered by the FAS Russia and the Ministry of Energy of the Russian Federation*.

SPIMAX JSC also sells coal brands that are not included in the joint order and where the minimum volumes of exchange sales are not set. In particular, over the past year of trading, more than 100 thousand tons of brown coal were sold, as well as other brands, that confirms demand for exchange-traded instruments in the coal market.

The sale of this energy resource through the stock exchange ensures digitalization of transactions and eliminates the possibility of setting economically unjustified prices by coal companies.

According to the Authority, the measures allow to create market domestic indicators.

A number of coal companies have already approved and posted trade policies on official websites, which define exchange trading as one of the priority channels for selling their products.

Besides, they provide for the priority of supply to the domestic market and the use of Russian indicators in coal pricing.

Currently, all leading coal companies are registered as participants in a bidding process, as well as large generating and small trading companies are present among the buyers.

Reference:

Order of August 15, 2022 No. 583/22/816 of the FAS Russia and the Ministry of Energy of the Russian Federation "‎ On approval of the minimum amount of coal to be sold on the coal exchange and requirements applicable to on-exchange trading in which transactions in coal are concluded by an economic entity occupying a dominant position in the relevant commodity market".