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#1(30) February 2013
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EXCHANGE BULLETIN

Dear Sirs!

OJSC Belarusian Universal Commodity Exchange presents the electronic versions of the printed Exchange Bulletins. This is a new information resource that will provide you with information on exchange quotation, world market of metal, timber, agricultural production and other exchange commodities. Results of exchange auctions, information on coming trade sessions, Exchange Board decisions and plans for perspective development are placed there. Our experts will offer you professional analysis of a state of the exchange and adjoining wholesale market of the republic, answers to the interesting questions, legal consultations. The Bulletin will also acquaint you with news at international exchange markets, possibilities, advantages and peculiarities of exchange trade.

#1(30) February 2013

Dear readers of the «Exchange Bulletin», exchange customers and our partners!

Traditionally, summing up the results of the past year, I want to thank you for the work and beneficial co-operation, which allowed us to complete 2012 successfully enough and to enter 2013 with excellent index numbers, which means with perspectives as well.

Major results are as follows: the annual exchange turnover increased almost twice and for certain positions – 3-5-times or more. Meanwhile, export in terms of foreign currency increased by nearly 35%.

Over the past year, almost two thousand new companies have joined the exchange, and at the moment our customer base includes circa 12 thousand participants. The number of non-residents, working via Internet in remote access, has increased by almost 400, arriving at about 2.5 thousand companies. Moreover, the number of companies from Russia has increased by almost 240, from the Baltic states – by more than 60, from Poland – by 28, from Ukraine – by 12, from

other European countries – by almost 40. At the end of 2012 the Belarusian exchange commodity market was discovered by one more country – Portugal. Thus, apart from the Republic of Belarus, the geography of exchange trade currently covers 56 states.

In this regard, the exchange activity to promote international and interexchange co-operation plays an essential role. Business contacts network in 2012 covered almost the entire globe: from South Africa to Brazil, India and New Zealand. In addition, as a full member of the International Association of Futures Markets, BUCE has repeatedly taken part in its conferences held around the world. The work of the Committee on commodity markets of the International Association of Exchanges of CIS, established by the initiative and with direct participation of the Belarusian Universal Commodity Exchange to integrate CIS and EurAsEC commodity markets, was very beneficial last year as well.

We have also achieved considerable progress in the field of exchange logistics, having registered new exchange warehouses not only in Belarus, but also in Russia, Kazakhstan, Bulgaria, Germany, Poland and the Baltic states. Experience has shown that they are in demand both by customers (particularly in the Baltic and Polish direction) and Belarusian exporters of timber products.

One more past-year event, which is significant for the whole Belarusian exchange trade history, should be noted – the beginning of auctions with futures contracts for metal products. The first futures are non-deliverable,

and as early as in six months we plan to launch deliverable futures for agricultural products.

We should also mention the exchange electronic trading platform for public procurement through electronic auctions and substantial co-operation with Russian colleagues, which resulted in the opportunity for Belarusian suppliers to enter the Russian public procurement market, and vice versa.

These and other events of 2012 are covered on the pages of this issue of the “Exchange Bulletin”. But first I would like to point out once again that many of them have been made possible because of us all – both exchange experts and, above all, the participants of exchange trade, who came to appreciate the effectiveness of the exchange mechanism and encourage us to search for and implement new instruments, that not just improve the level of exchange, but, in general, strengthen the reputation of our country.

I look forward to the same successful work in 2013!

Arcady Salikov, Chairman of the Board Belarusian Universal Commodity Exchange OJSC

KEY RESULTS OF BELARUSIAN UNIVERSAL COMMODITY EXCHANGE IN 2011

In 2012 at the Exchange 1 418 trading sessions were held, 214 807 (131% compared to the level of 2011) exchange transactions in the amount of (equivalent) 12 656 bln BYR were concluded, which amounts to 181% of the exchange turnover in 2011.

FOREIGN ECONOMIC ACTIVITY OF THE EXCHANGE

Foreign economic activity of Belarusian Universal Commodity Exchange OJSC based on a detailed and comprehensive analysis of the market situation ensures sustained growth in quantity and expansion in geography of exchange trading participants, extension of traded commodities list, boosting the international image of the Exchange and the Republic of Belarus as a whole.

METAL PRODUCTS

Total real turnover in the section rose by 6% and equaled 520 thsd tons (contrary to 492 thsd tons in 2011). The volumes of exchange transactions with ferrous metals for the domestic market increased by 50 thsd tons: from 350.1 thsd tons in 2011 to 398.5 thsd tons in 2012. Altogether the share of the exchange purchase of ferrous metals in the total volume of import in the end of the year arrived at around 17%. The volume of the exchange export of nonferrous metals, scrap and waste thereof increased by 7.2 thsd tons: 16.35 against 9.11 thsd tons. At the same time the exchange turnover has decreased for a number of commodities due to external reasons:

• scrap and waste of ferrous metals (export) – by 31% compared to the figures of 2011 (mainly because of the twofold drop in the sale of hard-to-sell scrap graded 26А);
• nonferrous metals and scrap (domestic market) – by 28% (due to the decrease in the volumes that Belcvetmet OJSC places at exchange auctions, as well as reorientation of marketing from the domestic to foreign);
• coal (import) – by 21%;
• coke (import) – by 11% (on account of the transition of a number of companies – former major exchange buyers to the use of alternative energy sources). 

TIMBER

In this section the growth of the exchange turnover in kind was seen virtually with all traded commodities (excluding the sale in the domestic market of round wood, plywood, chipboard and fiberboard, and paper products for export). There has been an increase in kind and in monetary terms of export sales volumes of the goods with a greater degree of processing (with a higher added value):

• exchange transactions volumes with sawn wood in kind compared to 2011 accounted for 119.4% (732.7 thsd сbm against 613.5 thsd сbm), in USD – 110%;
• as for plywood, the rate of growth amounted to 160.3% and 150% respectively.

AGRICULTURE

In this section there was a significant increase of exchange transactions volumes for all major commodities. Consequently, in comparison with 2011 the exchange turnover of skim milk powder (SMP) in kind grew 53-fold, hard cheeses – 2-fold, butter – 5-fold.