15 Mar, 2022 10:34

Russia wants to scrap dollar-pegged metals market

Global commodities prices have been surging amid supply concerns

The Russian Ministry of Industry and Trade proposed on Monday to temporarily set maximum possible domestic prices for steel products and raw materials, decoupling them from the US dollar. The measure is expected to support the industry.

The ministry explained that at the moment, there is a transformation in the structure of global demand for energy, raw materials, and metals, which often leads to record price increases. Thus, prices for raw materials such as iron ore and coking coal remain high, and the price of ferrous scrap has also been rising. Aluminum and copper products are exposed to currency fluctuations.

“Under such conditions, it is necessary to ensure the uninterrupted functioning of the industry by ‘decoupling’ prices for metallurgical products and raw materials from the dollar exchange rate,” the ministry said.

This will help prevent a surge in prices for the resources, as well as final products in the domestic market, the trade ministry noted. In addition, the measure will help maintain the pace of implementation of investment projects and the construction of federal and regional facilities, it said.

https://www.rt.com/business/551938-russia-dumps-dollar-pegged-metals-trade/

goodbye LME?