PRICING NOTICE: Proposal to update Metal Bulletin’s Brazil aluminium premiums

Metal Bulletin is proposing to update the specifications of its Brazil primary aluminium premiums to reflect even more closely current market conditions.

Given the reduced liquidity in the country’s spot market, Metal Bulletin intends to adjust the minimum lot size for its domestic and import premium assessments to 25 tonnes.

Currently, the domestic premium assessment considers a standard lot-size of 100 tonnes, while the cif Brazil premium includes information for import deals of 500 tonnes or more.

This change would allow Metal Bulletin to include more pricing points into its assessments, thus strengthening the process of calculating the price range for each market.

Metal Bulletin also proposes to update the terms of its domestic premium assessment to clarify that it takes as standard transactions done on a delivery duty-paid basis.

Brazil’s VAT tariffs, such as ICMS, ISS and IPI, are not included in the domestic premium assessment.

No changes are being proposed to Metal Bulletin’s cif Brazil aluminium extrusion billet premiums.

The consultation period will run until Friday October 21, 2016. Any comments that are intended to be confidential should be clearly marked as such.

Metal Bulletin will publish its decision on Tuesday October 25 along with a summary of comments received and responses to those comments.

If the changes are adopted, they will come into effect from Thursday November 3. The specifications for Brazil’s domestic and import primary aluminium assessments will be as follows: 

Description: domestic Brazil aluminium premium specification
Price: $per tonne aluminium
Grade: P1020A or 99.7 % minimum Al purity (Si 0.10% max, Fe 0.20% max)
Form: Ingot
Spot: Premium over LME cash for P1020A, Minimum 99.7% purity aluminium (Si 0.10% maximum, Fe 0.20% maximum)
Delivery: delivered São Paulo region
Minimum lot size: 25 tonnes
Duty: Paid
VAT tariffs: Not included
Payment: cash against documents (seven days after bill of lading date); other payment terms normalised
Assessment: on Wednesdays by Metal Bulletin’s São Paulo office
Publication: between 2pm and 3pm London time on Thursday 

Description: cif Brazil aluminium premium specification
Price: $per tonne aluminium, cif Brazil (premium over LME cash) spot market
Grade: P1020A or 99.7% minimum Al purity (Si 0.10% max, Fe 0.20% max)
Form: Ingot, sow, t-bar
Origin: Except China
Delivery: cif Brazilian ports, within 30-60 days
Minimum lot size: 25 tonnes
Duty: None
VAT tariffs: Not included
Payment: cash against documents (seven days after bill of lading date); other payment terms normalised
Assessment: Fortnightly on Wednesdays by Metal Bulletin’s São Paulo office
Publication: Between 2pm and 3pm London time on the following Thursday

If you have any comments on the specification, or would like to contribute to the assessment, please email Danielle Assalve on: danielle.assalve@metalbulletin.com.

Questions relating to Metal Bulletin’s pricing methodology and policy should be sent to market data and compliance manager Paolo Sorze at psorze@metalbulletin.com or Metal Bulletin editor Alex Harrison at aharrison@metalbulletin.com.

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