The prospects of timber commodity market Section «Timber and construction materials» SPIMEX ЗАО «СПбМТСБ»

Transcription

1 The prospects of timber commodity market Section «Timber and construction materials» SPIMEX ЗАО «СПбМТСБ»

2 About SPIMEX ABOUT SPIMEX JSC Saint-Petersburg International Mercantile Exchange (SPIMEX) was registered in May On 23 of September 2008 the first trading session with diesel and jet fuel was done in petroleum products section of the exchange. The clearing service is provided by SDCO (JSC) and settlements are done through 8 authorized organizations: Sberbank, VTB, GPB, AlfaBank, Russia, VBRR, Rosselkhozbank, and NSD. Now SPIMEX is the largest Russian commodity exchange, it organizes derivatives and commodities trading (wide geography of delivery bases) and maintains high standards of customer service. The total number of participants is more than 1900 companies. SPIMEX IN NUMBERS Petroleum products market: 530 bln 89,29 mln tons Oil market : 38,51 bln 2,84 mln tons Natural gas market: 65,56 bln 23,86 bln m3 Timber market : 375 mln 637,79 thousands m3 Derivatives market: 38,92 bln 1,62 mln contracts Slide 2 SPIMEX makes registration of the over-the counter contracts with crude oil, petroleum products, coal, and grain. Also the exchange provides representative price indexes of domestic market of petroleum products on the basis of on-exchange and OTC contracts.

3 Organization of trades in Timber and construction materials section Sellers Forestry (Autonomous state institutions) Commodities Coniferous and deciduous saw log Lumber Wood produced from sanitary measures (WSM) ( «Torg-i marketplace») Delivery basis More than 60 spots in Irkutsk region : warehouse of Nizhneudinskiy, Bayersky, Kostinsky, Kazachinsko-Lenski and other forestries, 1 delivery base in Permski region 2 railway stations in Irkutsk region Delivery conditions Terms of delivery Seller s warehouse Railway transport delivery 5 working days under seller s warehouse conditions 30 calendar days under railway transport delivery conditions Slide 3

4 The project development history 2014 The timber commodity market was launched on SPIMEX in 2014 within the confines of the assignment of President Putin given during the State council on 11 th April 2013, when The Presidium of State council approved the proposition of Irkutsk region Governor concerning the timber commodity market pilot project in the Irkutsk Region. The first exchange trades took place on 11th july 2014 The total quantity of timber sold in 2014 was 37 thousands cubic meters for the amount of 66,5 mln. rubbles, 34 contracts were registered In 2015 the project gained further development. On 27th January 2015 it was assigned by the Deputy Chairman of the Government A. G. Khloponin АХ-П9-332 for the competent government agencies to activate the work on distributing the Irkutsk region timber trades pilot project to the other regions of Russian Federation. The negotiations with the authorities of Krasnoyarskiy region and Amursky region began. The total quantity of timber sold on SPIMEX in 2015 increased more than 2 times, making 85 thousands cubic meters for the amount of 84 mln. Rubbles (1,2 times growth), 136 contracts were registered, 4 times more than in 2014, Slide 4

5 The project development history 2016 In 2016 the project continued to grow. On 26 th may 2016 it was assigned by the deputy Нead of the government A. Khloponin for the competent government agencies to study the issue of setting of mandatory sale of round timber exclusively through the electronic organized trades. SPIMEX signed the cooperation agreements concerning organized sales of timber with the authorities of Permsky region and Amurskyi region... The total quantity of timber sold on SPIMEX in 2016 was 7,5 times more than in previous period (637 thsd. Cubic meters), for the amount of 375,4 mln rubbles (4,5 times growth), 360 contracts were registered (2,5 times growth) 2017 On 26 th January 2017, at a meeting in the Ministry of Industry and Trade of Russia it was decided to instruct the competent departments to study the issue of the possibility of establishing mandatory conditions for using the exchange trade mechanism for the sale of timber for export, as well as the issue of mandatory sale of round timber received in accordance with Article 19 of Lesnoy Code of Russia, through the mechanism of the electronic organized trades January 31, President of the Russian Federation Vladimir Putin approved a list of instructions on the use, protection and reproduction of forests, as well as the turnover of timber. In January, SPIMEX signed an agreement on cooperation in the sale of timber with the government of the Kirov region. March 3 The trading of timber produced in the Perm region started in the section "Forest and building materials" of SPIMEX Plans for 2017: Slide 5 Expansion of the geography of trades Working out the organization of export trading together with the Ministry of Industry and Trade and the Federal Antimonopoly Service of Russia Increased volumes of non-standardized timber sales, The projected trading amount of timber at the end of 2017 is million cubic meters. The dynamics of the development of trading is shown on the following slides

6 Trading statistics Total amount, (cubic meteres) Total amount, (mln ) г. 2015г. 2016г. 2017г. ( 1 квартал) The total quantity of timber sold on SPIMEX in 2016 was 7,5 times more than in previous period (637 thsd. Cubic meters), for the amount of 375,4 mln rubbles (4,5 times growth), 360 contracts were registered (2,5 times growth) According to the results of the first quarter of 2017, cubic meters of timber were sold (3.3 times more than the same period last year) for a total of more than 108 million rubles (3 times as high as the 1 st quarter of 2016), 91 contracts were registered (2 times more than the same period of 2016). Slide 6

7 Sales of wood obtained as a result of sanitary measures (TSM) The volume of sales of WSM in and weighted average selling prices , ,00 625,00 632,48 663,06 650,00 636, ,00 600, ,75 549,75 549,75 521,50 499, ,783 16,353 1, ,05 450, ,17 552, , , , ,00 500,00 450,00 400,00 350,00 TSM trade value (cubic meters)) Average weighted selling price In 2016, about 50% of wood received during the SM in the Irkutsk region, was sold through an electronic trading platform. In 2017, the wood produced during the SM in the Irkutsk region will be sold on the electronic platform in 100% volume, which will be approximately 1.3 million cubic meters Slide 7

8 Trading statistics Analysts of the Exchange began to form price indicators on trading instruments. On the slide, as an example - the dynamics of average prices for some types of saw logs, presented at the trades q q q q q q q q q Saw log pine(grade2), length 6 м Saw log pine(grade2), length 4 м Saw log larch(grade2), length 6м The dynamics of trading volumes shows that the volume of timber sales on the exchange for the first 2 months of 2017 has more than tripled the figures for the same period in кв 2016г. The dynamics of trading volumes: October March (M3) кв 2017г Slide 8

9 Benefits of organized timber trades For the State: For Buyers For Sellers Increase in timber market Trading conditions Attractive selling price due transparency; standardization; to the concentration of Formation of reliable Guarantee of delivery; demand in a single trading timber price indicators Guarantee of legal origin system; Increase in tax revenues. of purchased timber; Payment guarantee; Simplification of Bank lending for exchange accounting and contract sales. management procedures. Slide 9

10 3 Prospects and development plans «Timber and construction materials section» Slide 10

11 Further development of the project Basic principles of the project development in Orders of the President of the Russian Federation of January 31, 2017 No. Пр -173 On the consideration of the expediency of organizing trade in exported raw round timber on commodity exchanges On the necessity to provide proposals for the sale of timber obtained from the cutting of forest plantations by state institutions, on commodity exchanges 2. Protocol of January 26, 2017 No. 5-EB / 13 meeting in the Ministry of Industry and Trade of Russian Federation It was entrusted to work out the issue of establishing the mandatory sale of round timber, obtained in accordance with Article 19 of the Forestry Code of the Russian Federation (SM wood), through the mechanism of exchange trade. It was entrusted to study the issue of the possibility of establishing mandatory conditions for using the mechanism of exchange trade in the sale of timber for export 3. The order of the Deputy Chairman of the Government of the Russian Federation A.G. Khloponin To work out the issues of distributing the pilot project to other regions of the country and the sale of round timber exclusively through the electronic exchange trades. Slide 11

12 Roadmap for the development of the project The basis of the road map is the implementation of instructions of the President of the Russian Federation on the use, protection, and reproduction of forests, as well as the turnover of timber In February 2017, a subcommittee of timber trading development was created under the Exchange Committee of the Federal Antimonopoly Service with the participation of the Bank of Russia, representatives of industry associations, consumers, the Ministry of Natural Resources and the Ministry of Industry and Trade in order to implement the instructions of the President of the Russian Federation and the Government in regulating and improving the timber market The federal road map of the project was developed jointly by the Federal Antimonopoly Service of Russia, the Bank of Russia, competent federal agencies and SPIMEX. In January-February 2017 In the process of interaction with representatives of regional authorities, action plans for the development of organized trade in forests in the Perm Krai, Irkutsk and Kirov regions for 2017 have been developed and approved. Introduction of railway station bases with organization by the Supplier at the expense of the Buyer of railway transportation of goods to the destination point. Working out the issues of organization of exchange trades with delivery for export, term - May Formation of local hubs on the bases of railway stations of timber transshipment. Slide 12

13 Contact Information JSC Saint Petersburg International Mercantile Exchange Address: Moscow, Timura Frunze str., 24 Tel.: +7 (495) Web-Site: Saint Petersburg: , Marata st , lit. А +7 (812) Irkutsk , Gorkogo st., 36 Б, of. III (395) ; +7 (395) Slide 13 Perm Sovetskaya st. 24 (unit б) +7 (342)