Search the site

Back
News

CRU completes benchmark assurance review for its leading, transaction-only based, CRU-API (Alumina) price

Colin Mills

Marketing Director View profile

Chris Houlden

Research Manager View profile

Claire Ballak

Compliance Lead View profile

CRU successfully completes independent assurance review for its leading, transaction-only based, CRU-API (Alumina) price.

CRU has successfully completed an external assurance review of its CRU Alumina Price Index (CRU-API), carried out by independent professional services company PricewaterhouseCoopers LLP (PwC). CRU has prepared this report to underline its adherence to the International Organization of Securities Commissions’ (IOSCO) Principles for Oil Price Reporting Agencies.

Independent research has demonstrated that the CRU-API is used widely in the settlement of physical contracts, and it will be used in the settlement of the London Metal Exchange’s new cash-settled Alumina futures contract, due to launch on 11 March 2019.

“CRU’s report demonstrates its ongoing commitment to providing the most robust price benchmarks for physical and derivative markets through a range of strong and appropriately designed policies and procedures in accordance with the requirements of the IOSCO Principles. Together with our company’s values of quality and integrity, and our market-leading research and analysis capability, our IOSCO adherence is a crucial pillar that engenders the market’s trust in our prices,” CRU Group CEO David Trafford said.

“The correct structures, operation of processes and application of the best and most appropriate methodologies are essential in upholding the proper governance of CRU’s prices.  We have and we will continue to invest in our compliance function, analysts, systems and independent external review and assurance. This will ensure our price assessments endure as the most reliable indicators of commodity market values in the service of our stakeholders,” CRU’s Compliance Lead Claire Ballak added.

To request CRU’s report, including the independent assurance report, or if you have further queries please contact compliance@crugroup.com. Full details of CRU’s CRU-API methodology are available here, while CRU’s overall compliance framework and methodologies are detailed here.

For more information on the use of the CRU-API in financial derivatives market, please read more here.

About CRU

CRU is an independent, privately owned, price, analysis, consulting and events business specializing in the mining, metals and fertilizer sectors. Founded in the late 1960s and headquartered in London, it has over 280 employees worldwide and has analysts and price assessors in London, Pittsburgh, Santiago, Delhi, Mumbai, Shanghai, Beijing and Sydney.

The company delivers independent market analysis and price assessment across a comprehensive range of internationally-traded commodities – its reputation with customers across mining, metals and fertilizers is for integrity, reliability, independence and authority.

The CRU-API (Australia FOB alumina) is a transaction-only weekly price benchmark. Use of transaction data alone as data inputs to this price ensures that it accurately reflects the actual spot market with no risk of information from sentiment, errant opinion, speculative or even confirmed but ultimately unexecuted bids and offers entering the published price.

The CRU-API and other leading CRU Alumina and Bauxite prices and market analysis are available in the CRU Bauxite and Alumina Monitor. For more information please visit CRU's Monitors.

 

Colin Mills

Marketing Director View profile

Chris Houlden

Research Manager View profile

Claire Ballak

Compliance Lead View profile