SPIMEX expects to launch exchange trading of coal in fall
MOSCOW. July 13 (Interfax) - Exchange trading of coal in Russia could begin in the fall, the president of the St. Petersburg International Mercantile Exchange (SPIMEX), Alexei Rybnikov said.
"In the fall we expect to launch exchange trading of thermal coal already under new rules," Rybnikov told reporters.
He said a joint order from the Federal Antimonopoly Service (FAS) and Energy Ministry has been approved and the exchange is waiting for its publication.
"The next steps are approximately as follows: we launch spot trading, gain experience and lock down matters related to transportation at the necessary pace," Rybnikov said, adding that the range of the traded types of coal could be expanded in future.
Speaking about the potential launch of trading of coal futures, he said it is first necessary "to establish our own domestic indicator; when there's an indicator we'll discuss the launch of futures, we still have to live to see this, it will take at least a year."
A pilot project for exchange trading of thermal coal was launched on the exchange in December 2019 with trading of the most common D-rank coal. More than 1,500 tonnes of coal were sold in the first trades. In May 2021, market participants were given the possibility of trading 16 new exchange coal commodities: eight ranks of long-flame coal and eight ranks of brown coal.
In the spring, the Energy Ministry announced plans to start exchange trading of two ranks of coal by summer as a measure to support prices for coal products.
"For the next fall and winter period, a solution has been found with the largest coal companies to support prices for coal products, including by entering into long-term contracts directly with producers using recommended price levels, as well as organization of exchange trading. And such trading for two ranks of thermal coal will already be organized by June," Energy Minister Nikolai Shulginov said at the time.
At the end of April, SPIMEX managing director Alexei Ryzhikov said the exchange was ready to start trading coal for domestic and export delivery. He said the exchange had cleared the trading technology with market participants and set up bodies made up of producers and consumers.