Get documents about "Commodity Exchange Gains Credibility In the Belarusian
Shared by: alicejenny
-
Stats
- views:
- 5
- posted:
- 9/24/2012
- language:
- Unknown
- pages:
- 5
Document Sample
COMMODITY EXCHANGE NEWS
Commodity
ECONOMY OF BELARUS
Exchange Gains
Credibility
In Q1 2007 the Belarusian Universal Commodity Exchange held
109 auctions to sell Br466.28 billion worth of goods, 2.1 times
more than in Q1 last year.
Svetlana PAVLOVA, Economy of Belarus Magazine
The strategic goal set by the Government before the country’s major
producers and consumers is to abandon the practice of using mediators
in importing and exporting goods in order to minimize expenses. The
Belarusian Universal Commodity Exchange (BUCE), the key player in
the wholesale market of strategically important products, aims to help
Belarusian companies to meet this goal.
It goes without saying that establishment of a stock-exchange institution
is a prerequisite for ensuring proper functioning of market mechanisms.
As the market develops, the role and significance of this regulator of
movement of commodities and services also grows. Over the two years
since its inception (the first auctions were held in June 2005), the
Belarusian Universal Commodity Exchange has not only turned into the
wholesale trading ground number one but also become an important
leverage on the domestic market.
Thus, in 2006 the number of BUCE traders went up in more than seven
Steps of Growth times, that of non-resident traders representing 26 countries – 3.5 times.
Some 375 trade sessions were conducted, 44,000 deals to the tune of
S
ince its founding the Br1,154 billion were concluded. Exports reached 37% of the total deals
Belarusian Universal with exports of some items exceeding 50%. Due to BUCE, Belarusian
Co m modity Exchange exporters received more than EURO 5 million worth of additional revenues
has pursued the goal to create and Belarusian buyers saved Br18 billion from reduced prices for imported
a market mechanism of trade metal.
and price formation, to ensure
transparency of trading operati-
ons in strategically important timber, metal and agricultural of ensuring observation of
goods, to promote the meeting products; improving legal base obligations under deals was de-
of top priorities of the national and extending the list of goods veloped; the list of goods sold by
economy: to raise the production subject for auctioning via the Exchange was extended; the
efficiency, competitiveness of Be- BUCE; developing e-commerce Exchange fees were reduced. Sin-
larusian goods both domestically system. ce March 1, 2007 BUCE accre-
and internationally and to BUCE met all the targets of ditation has been provided free of
strengthen the country’s econo- 2006. The Exchange settled all charge.
mic security. auction technicalities and drew The e-commerce system was
The year of 2006 marked a up a list of traders. The number created to connect the BUCE
formation period of the Belarusi- of traders and deals concluded at central trading facility in Minsk
an Universal Commodity Exchan- BUCE was growing throughout with its branches in other towns.
ge as the main institution of the year. The system of legal It is also possible to take part in
market infrastructure of Belarus. acts regulating exchange trade auctions via the Internet. There
BUCE focused on auctioning of was improved; the mechanism are four trading halls in the BUCE
118
COMMODITY EXCHANGE NEWS
central office. A BUCE branch in at each auction as compared to working on a draft resolution
Brest was opened in September 2,851 tons worth of 5.2 billion in on extending the list of goods
ECONOMY OF BELARUS
last year. The Gomel branch of 2006. subject for mandatory sale via
the Exchange will be opened soon. The share of ferrous metals exchange auctions which will
Premises for Mogilev and Vitebsk and products thereof imported include aluminum and copper
branches have been found.
BUCE in partnership with oblast
executive committees regularly
organizes seminars to explain the
advantages of Exchange auctions.
Basic training of beginners in
operating the e-auction system is
provided free of charge.
From Metal to Rape
Seed Oil
In Q1 2007 the commodity
exchange market was posting
upward trends. BUCE turnover
more than doubled. The offering
range of the agricultural,
metal and timber sections of
the Exchange was significantly
extended. All in all, there are
more than 100 types of pro-
ducts in the BUCE offering from Russia and Ukraine to be (90% of the non-ferrous metals
range. sold at BUCE is still quite high. market). BUCE has already gain-
In Q1 2007 the metal section Domestic producers mainly offer ed some experience in selling
was selling ferrous and non-fer- ferro-concrete reinforcement and these products: the first auctions
rous metals, scrap iron and wastes pipes. BUCE also trades in metal for aluminum and copper were
of non-ferrous metals, coke products from Brazil, Germany, held in late March. Experts believe
and coal. Some 33 trade sessions Poland, France, Spain, Norway that this is quite a promising area.
were held; 16,003 deals were and some other countries. The Now the exchange auctions for
concluded on sale/purchase of supply of metal products still non-ferrous metals are held every
103,300 tons of products to the tu- overtops the demand. Over week, those for ferrous metals
ne of Br206.5 billion (an increase 700,000 tons of metal products – twice a week on Tuesdays and
of 39.6% in natural units and are auctioned at each trade Fridays.
92.3% in value terms). On average, session. In Q1 2007 over 2,700 deals on
3,262 tons of metal products at the The Council of Ministers of timber were stricken at BUCE.
sum of Br8.2 billion were bought the Republic of Belarus is Some 29 sessions were conducted
to sell 1,301 cubic meters of tim-
ber to the tune of Br157.35 billi-
on. The sales went up 1,5 times
as against same period last year.
The additional revenues of the
Belarusian forestry companies
derived from the auctions
approximated Br11.3 billion
and Є2.9 million from export
sales.
However there are still some
serious problems in auctioning
timber. Thus, special exporters
still enjoy the right to sell timber
bypassing BUCE. Some of
them delay fulfillment of their
obligations under the deals,
others supply poor-quality timber
to the general discontent of the
customers which undermines
119
Prime Minister of Belarus Sergei Sidorskiy gets familiar with the work of
the Belarusian Universal Commodity Exchange
COMMODITY EXCHANGE NEWS
the credibility of the whole non-fat dried milk is attributable was considered at the session
to attraction of companies
ECONOMY OF BELARUS
country. of the Presidium of the Council
The practice of auctioning from Singapore, Germany, the of Ministers of the Republic of
timber with indication of such Netherlands, Finland, Poland, Belarus. On the eve of the session
Prime Minister of Belarus Sergei
Sidorskiy visited BUCE. He got
familiar with the BUCE operation,
with the way the deals are
done and met with BUCE per-
sonnel.
As it was noted during the
session, in 2006 the Exchange
formation period was over: all
the technicalities had been sett-
led, the auctioning methods had
been developed, the list of buyers
and sellers had been extended,
an e-auction system had been
created.
In 2006, BUCE conducted 375 trade
sessions to conclude
44,000 deals to the tune
of Br1,154 billion
defects as sap stains, dotes and Lithuania, Latvia and Syria to The constantly growing
rough edges is still in place. BUCE auctions. Sales of casein number of BUCE customers
These and other ‘specifications’ industrial also grew: today BUCE and deals testify to the fact that
reduce the number of bidders sells 82% of the total casein the Exchange can be considered
and undermine the efficiency of produced in Belarus. as a national institution which
exchange auctions. BUCE plans to extend the effectively regulates the whole-
These problems should be sol- list of goods auctioned in this sale market of strategically
ved bearing in mind state inte- section too. Among the new important goods in accordance
rests. BUCE has prepared propo- products suggested for sale via with the market economy laws.
sals on improvement of timber the Exchange are butter, fodder – BUCE is, first of all,
auctioning, among which there grain and corn, rape seed oil, crop an indicator of real prices
are quarterly price adjustments protecting agents, tannage. BUCE determined by the market rather
on long-term contracts, equal has already started accepting than by some impressionistic
distribution of resources within applications for sale and purcha- factors, Chairman of the BUCE
a year, auctioning of rough and se of butter, grain and corn. Board of Directors Arkadiy
split logs at BUCE. Salikov stressed. – Everyone, even
Short- and Mid-Term our opponents, agree with that.
As for the agricultural
production section, in Q1 2007 a
Perspectives Due to the Exchange the choice
total of 326 deals were concluded In early April this year the and competition are growing,
to sell Br65.15 billion worth of performance of the Belarusian the price depends on supply and
goods, including Br15.8 billion Universal Commodity Exchange demand.
worth of casein, Br2.7 billion
worth of welt-salted hides and
Br18.8 billion worth of grain. INVESTMENT PROJECT
The sales of the above-mentio-
ned goods grew 9, 5,7 and 2,2 times
respectively as against Q1 2006. Equipment Upgrade
By the way, of 11,100 tons of
Total cost: $1 million.
non-fat dried milk exported, only
Project supervisor: Yelsk Furniture Factory, 1 Tsentralnaya Street, Yelsk, 247820,
10.6% went to Russia, with the Gomel oblast, the Republic of Belarus.
rest having been sold to countries Tel./fax: (02354) 3¬16¬44, 316¬47, 3¬16¬48
outside the CIS. The increase in E-mail : mebelsk@rambler.ru
trade and hence in prices for the
120
COMMODITY EXCHANGE NEWS
Today the role of this instituti- Exchange, improvement of the
MADE IN BELARUS on in the country’s economy settlement and guarantee sys-
ECONOMY OF BELARUS
multiplies: the Government has tem, development of the
attached an official status of international cooperation, rai-
the main trader in strategically sing the role of banking services
important goods to the Exchange. in the commodity exchange
BIODEGRADABLE When commenting on the decisi- market.
PACKAGING
A technology to produce
biodegradable packaging
has been developed by the
Republican Center of Transfer
of Technology. Its manufacture
can be launched at companies
producing engineering
thermoplastic with no new
equipment to be purchased.
According to preliminary data,
the prime cost of the biodegradable
film produced in Belarus will make up
$2-3,5 per 1 kg what is much cheaper
than similar films manufactured
abroad like those produced in Europe
under the trademarks Mylar, Gralix
which cost EURO 3,5 per 1kg.
on, Prime Minister of Belarus BUCE has been also taking
FIREPROOF Sergei Sidorskiy said: “We pay an active part in the im-
The Research Institute of lump sums from the budget to plementation of the state prog-
Physicochemical Issues of foreign suppliers. Therefore the ramme E-Belarus. In accordance
Belarus State University came country is interested in minimi- with the programme, the Exchange
up with an import-substituting zing expenses of maximally has to become a foundation for
fire-retarding composition for lucrative deals”. the e-commerce centre and
cable insulation Penoterm-K. The Government urges universal internet portal provi-
domestic producers of stra- ding access to various instru-
The new covering becomes tegically important exports to ments of e-commerce both do-
active when heated: under high more widely use the Exchange mestically and internationally.
temperature it forms a thick insulating for fixing real market prices on
layer. The service life is no less than their products. Thus, in Q3 and
12 years in unheated facilities with
Q4, Belarusian Steel Works will
About 17% of BUCE customers
the temperature running from -30C
sell part of its products via
have remote access to BUCE
to +50C.
BUCE. auctions
Experimental models have
been tested to make sure they duly Today the Belarusian Univer-
comply with the domestic fire safety sal Commodity Exchange relies – On the whole, our task is to
standards. According to the results, on its development programme provide as broader set of services
the quality meets the analogous for 2007-2010 adopted by the Coun- to our customers as possible rath-
product made in Germany while cil of Ministers. An action plan er than to be just a wholesale
being 2 or 3 times cheaper.
for 2007 has also been elabora- facility, Arkadiy Salikov says. –
So far such material has not
been produced in Belarus. Setting
ted. In the short- and mid- The main goals remain the same:
up the production of the material term perspectives the main to give the Belarusian companies
is estimated to pay back in two areas of BUCE activities will an opportunity to buy and sell
years. be improvement of the legal their products at maximally
framework of deals, development lucrative prices and to promote
of the subsidiary network, transition to formal wholesale
price quotation, extension of market of the strategically im-
the list of goods sold via the portant products.
121
122
ECONOMY OF BELARUS
