Companies from eight countries conclude targeted transactions at BUCE

November 13, MINSK . The geography of foreign buyers of lumber using the mechanism of exchange-traded transactions has expanded to eight countries. BELTA was informed about this by the press service of the Belarusian Universal Commodity Exchange.

“The main market for the sale of lumber through targeted exchange transactions is China. From June to November, using the targeted mechanism, over 174 thousand cubic meters of lumber products were sold to this country. This indicator correlates with EXPORT indicators under regular exchange transactions, where Chinese companies also occupy leading positions. If we talk about the share of targeted transactions in the total volume of exchange exports to China, then today it is about 45%. Along with the People's Republic of China, the top three buyers also included Azerbaijan and Singapore. They accounted for 19 thousand cubic meters. m and 13 thousand cubic meters of lumber, respectively. Both state-owned enterprises and private wood processors act as sellers in the framework of targeted transactions,” the BUCE press service reported.

Currently, taking into account the demand for exchange-traded transactions among Belarusian exporters and the growing interest in this mechanism on the part of non-resident companies, the issue of expanding the scope of its application to other commodity items is being considered. First of all, these are dairy products - skimmed and whole MILK powder , butter , rennet cheeses . It is expected that providing the opportunity to sell these products through targeted transactions will increase the attractiveness of exchange trading for foreign buyers, reduce the associated risks and provide an objective price reference for participants in this market.

The ability to register exchange-traded transactions for the export of lumber is available at BUCE from June 22, 2023. The main feature of such transactions is that they can be concluded directly with foreign buyers, however, the selling price of the goods must not be lower than the current exchange quotation for this product, formed based on the results of exchange trading. In addition, since targeted transactions are registered on the exchange, their participants have the right to use all risk insurance instruments available at BUSE.