DMITRY MAKHONIN DISCUSSED EXCHANGE TRADING WITH MINERAL FERTILIZERS IN PERM
Accessibility of mineral fertilizers and trends in this sector were discussed in the 12th International Conference on Mineral Fertilizers in Perm. The event was attended by manufacturers, trading and broker companies and agro-holdings.
Alexei Chibisov, Minister of Industry, Business and Trade of the Perm region, pointed out: “It is a big responsibility for us that the Conference took place in the Perm region because production of mineral fertilizers is one of the most important sectors in the economy”.
The focus of vivid discussions was on-exchange trading. According to experts, exchanges enable conclude deals with guarantied execution.
Head of FAS Department for Regulating the Fuel-and-Energy Complex and Chemical Industry,Dmitry Makhoninwho emphasized that development of exchange trading in Russia is one of the important areas of the state policy and competition development specified in No. 618 Order of the President of the Russian Federation of 21.12.2017.
He explained that “exchange trading in Russia is used to support market pricing for such goods as oil products, gas and timber. Exchange trading on the natural gas market is becoming a tool of deregulation and enhancing efficiency of the gas market. In 2019 nearly 300,000 tons mineral fertilizers have been offered for sale*. An important task today is to make the trading procedure more transparent and accessible for consumers. Developing exchange trade with mineral fertilizers will enable to choose a way to obtain fertilizers: off-exchange or exchange contracts. Liquid price index will be formed for market participants”.
Dmitry Makhonin highlighted: “FAS has drafted all necessary regulatory acts for exchange trading. They are either already passed, or are submitted to the Government, and this year we expect that the Government will adopt these acts in the form of decrees”.
As a result of the discussion, a decision was made to continue further inform consumers about exchange trading with mineral fertilizers, particularly, through the “Exchange Trading” Informational Section on producers’ web-sites.
Producers of mineral fertilizers are recommended to trade commodities on a regular and even basis at reserved prices, compared with direct contracts and disclose information about transport costs to publish on “SPIMEX” JSC.
In its turn, “SPIMEX” JSC is recommended to consider mock-exchange trading with mineral fertilizers in the Eurasian Economic Union.
Background:
* Exchange trading with mineral fertilizers is at the stage of development: 8 991 tons of mineral fertilizers were sold in 2019 for 189 million RUB: ammophos – 4 382 tons; carbamide – 1 925 tons; salpeter – 2 664 tons.