Tuesday, June 1, 2010

Alcoa (NYSE:AA) Under Russian Anti-trust Investigation

Alcoa is under investigation by the Russian anti-trust body - Federal Anti-Monopoly Service (FAS) for potential violations.

Operations from Alcoa's Metallurg Rus unit is the company being investigated, as well as other commodity producers in the country: Chelyabinsk Zinc and copper miner UMMC

Alcoa said haven't done anything wrong, and the issue surrounds pricing of their products.

The FAS asserted Alcoa Metallurg Rus had been arbirtrarily raising their prices on two aluminium alloys.

The company responded saying, "Objective market factors exist, which force producers to raise prices. We hope to be able to defend our position in front of the FAS."

Evidently Russia still has trouble understanding markets and prices which arise from them.

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