The current methodology reflects cargoes sold on a cif basis for delivery to the main Japanese ports of Yokohama, Nagoya and Osaka within four weeks from the date of the transaction.
Fastmarkets invites comment from market participants to determine whether extending the delivery window to six weeks would more accurately reflect the way cargoes are trading in the market and allow for more liquidity to be captured.
Fastmarkets acknowledges that some of our prices are used for the settlement of spot and term contracts. Therefore, we invite market participants active in these markets to contribute to the consultation on this proposal.
The consultation invites comments on extending the delivery window to six weeks, but feedback is welcome on alternative timeframes, or on the merits of continuing to apply a four-week delivery window for spot transactions.
The specification is as follows, with the proposed change in bold:
MB-AL-0343 Aluminium P1020A (MJP) spot premium, cif Japan, $/tonne
Quality: P1020A or 99.7 % Minimum Al purity (Si 0.10% max, Fe 0.20% max) in line with LME specifications. Ingot, T-bar, sow
Quantity: Min 100 tonnes
Location: cif in main Japanese ports at Yokohama, Nagoya and Osaka, premium on top of LME cash prices
Timing: Within 6 weeks
Unit: USD/tonne Payment terms: Cash against documents (2 days after Bill of lading date) Publication: Twice weekly. Tuesday and Friday by 4pm London time
Notes: Excluding metal from LME warehouses and metal subject to international sanctions. Assessed by Fastmarkets’ Singapore office
There are no other proposed changes to the specifications of the assessment, either on a spot or quarterly basis.
The consultation period ends on Wednesday July 1 with changes to be implemented for the Friday July 3 assessment, subject to the result of the consultation.
To provide feedback on this proposal (or if you would like to provide price information by becoming a data submitter to these assessments) please contact Karen Ng or Archie Hunter by email at firstname.lastname@example.org. Please add the subject heading FAO: Karen Ng / Archie Hunter, re: Aluminium P1020A (MJP) delivery window.
To see all of Fastmarkets’ pricing methodology and specification documents, go to https://www.fastmarkets.com/about-us/methodology.
Fastmarkets is proposing to extend the delivery window for its aluminium P1020A (MJP) spot premium, cif Japan.