CFTC to Overhaul US Aluminum Pricing Mechanism, Chair Selig Says

Cointime update: CFTC Chairman Michael Selig said Friday the agency is planning a comprehensive overhaul of US aluminum pricing mechanisms and will examine whether new contracts can improve market transparency. Selig has directed the agency’s global markets team to review the pricing mechanisms and develop reform proposals to protect US markets and manufacturers, citing concerns that benchmark pricing has decoupled from the physical US metals market. LME aluminum prices have risen above $3,700 a ton, a four-year high, amid Middle East war-related supply shortages.