TREE NEWS update: CFTC Chairman Michael Selig said Friday the agency plans a comprehensive overhaul of US aluminum pricing mechanisms and will examine whether new contracts can improve market transparency. Selig said he has directed the agency’s global markets team to review pricing mechanisms and develop concrete reforms to protect US markets and manufacturers. LME aluminum has risen above $3,700 a ton, a four-year high, amid supply shortages tied to the Middle East war, pushing total costs for US consumers above $6,000 a ton.
CFTC to Review US Aluminum Pricing Mechanisms, Chair Selig Says
A US regulator scrutinising how aluminum is priced is a notable shift toward the plumbing of commodity benchmarks rather than the metal itself, and the timing matters: with LME prices at a four-year high and US consumers paying a steep premium, the gap between global and domestic pricing is the real pressure point. Manufacturers and any tokenised or contract-based commodity markets built on these benchmarks are the most exposed to whatever reforms emerge. Whether the review produces genuinely new contract structures — and whether transparency improves enough to narrow that premium — is the open question.
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