Aluminium premiums
Our price reporters track and assess a wide range of premiums for aluminium in locations across Asia, Europe and the Americas, providing the industry with tools to hedge premium price risk.
Our aluminium premiums are industry and financial benchmarks. The London Metal Exchange and the Chicago Mercantile Exchange have a number of premiums contracts settled against Fastmarkets’ aluminium premiums.
In September 2015, the CME launched a Rotterdam duty-unpaid futures contract settled against Fastmarkets’ daily duty-unpaid Rotterdam price. The CME’s aluminium premium duty-paid futures contract, underpinned by Fastmarkets’ Rotterdam duty-paid premium, started trading on the CME in March 2016.
On March 11 2019, the LME launched a new cash-settled aluminium duty-unpaid European contract, settled against Fastmarkets’ benchmark Rotterdam premium. The introduction of the regional aluminium premiums on the LME provides the market with the ability to manage their price exposure on a single trading venue, since the LME also holds the global benchmark for the underlying aluminium price.
Latest insight
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Fastmarkets selected as LME’s MJP aluminium premium partner
Fastmarkets has been selected by the London Metal Exchange as its partner to launch a Main Japanese Ports (MJP) aluminium premium contract in the second half of 2020. The contract will settle against the Aluminium P1020A spot cif main Japanese ports price.
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Webinar: Introducing new Fastmarkets-settled LME alumina and aluminium premium contracts
Learn how we assess daily alumina indices and aluminium premium assessments and how you can manage your risk with the new LME cash-settled contracts.
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LME European aluminium contract to give participants additional hedging tool in risky market
Physical aluminium premiums have been susceptible to price swings in the past decade. Having more options, like the LME cash-settled contracts, gives market participants more opportunities to mitigate risk.
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LME adopts Fastmarkets MB prices for new cash-settled derivatives
The London Metal Exchange (LME) and Fastmarkets have launched three new cash-settled derivative contracts to provide effective risk management tools for the aluminium, alumina and cobalt markets.
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Market-reflective prices
Being clear about our price assessment and index process is important. You can be confident that our pricing process is impartial, market reflective and market aligned. Our methodology is aligned with core IOSCO principles and we have successfully completed an assurance review (from PricewaterhouseCoopers) for our financial benchmarks.
View our aluminium premium methodology and specification documents here.
Our pricing process
Our solutions
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Aluminium Market Intelligence Service
Five-year iron ore price forecasts with quarterly analyst updates
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