Fastmarkets proposes to launch CIF Rotterdam aluminium billet premium calculated assessment

Fastmarkets is proposing this launch in response to industry feedback seeking greater transparency in CIF-based pricing for aluminium billet in Europe. The proposal reflects evolving market developments, including Carbon Border Adjustment Mechanism (CBAM) and related regulatory shifts, which have increased interest in CIF-based price references to support market activity.

The specification of this price would be as follows:

Aluminium 6063 extrusion billet premium, cif Rotterdam, $/tonne
Quality: Aluminium Assn specification AA6063: Si 0.2-0.6% max, Mg 0.45-0.9% max, Fe 0.35% max, Cu 0.1% max, Cr 0.1% max, Zn 0.1% max, Ti 0.1% max, Others each 0.05% max, total 0.15% max. Extrusion billet with outside diameter of 6”, 7” and 8”
Quantity: Min 100 tonnes
Location: cif Rotterdam port, premium on top of LME cash prices
Timing: Within 3 months
Unit: USD/tonne
Payment terms: Cash against documents (7 days after bill of lading date)
Publication: Weekly. Friday 4:30pm London time

Fastmarkets is also seeking feedback on the proposal for a calculated DDP Germany-CIF Rotterdam differential for aluminium 6063 extrusion billet.

Fastmarkets would calculate the CIF Rotterdam billet premium using the following formula:

CIF Rotterdam billet = LME cash + mid-point MB-AL-0302 (all-in price) – duty – logistics – CBAM – LME cash.

The all-in price would be calculated by combining the London Metal Exchange aluminium cash price plus the midpoint of MB-AL-0302 aluminium 6063 extrusion billet premium, ddp North Germany (Ruhr region), $/tonne on the day of publication.

The 6% European import tariff for aluminium billet would be deducted from the all-in price.

The freight and trucking component would be assessed weekly by a price reporter based on market information gathered from participants on average costs from North Germany (Ruhr region) to Rotterdam. This component would then be deducted from the all-in price (exclusive of duty).

An assessment of average warehousing, financing, freight and port handling costs would also form part of the price discovery process.

Costs associated with CBAM would also be deducted in the calculation. Fastmarkets proposes to use CB-CC-0042CBAM Certificate Index, €/tCO2e (converted to $/tonne for the CIF Rotterdam billet premium), which provides a forward-looking assessment of certificate costs at the end of the reporting period. The index combines auctioned EU Allowance (EUA) values with spot and forward EUA prices, bringing primary and secondary market data into a single actionable benchmark.

This would be used alongside a volume-weighted average of default emissions values for the top five importing origins under HS 7601. This data would be reviewed at the beginning of each quarter, covering the previous quarter, to produce an indicative CBAM cost for aluminium.

Fastmarkets also proposes to publish a separate duty-free reference, whereby the tariff component would not be included in the premium calculation.

The methodology may evolve to incorporate verified emissions data in place of default values, as well as any legislative changes to account for carbon pricing in third countries, subject to industry feedback. Any future changes to methodology will also be published in a public consultation.

The calculated CIF Rotterdam billet premium would be published weekly on Friday at 4:30pm London time, after the publication of MB-AL-0302.

Please send any questions or comments by July 16 to pricing@fastmarkets.com and basemetals@fastmarkets.com. Please add the subject heading “re: CIF billet Rotterdam.” Please indicate if comments are confidential. Fastmarkets will consider all comments received and will make comments not marked as confidential available upon request.

To see all Fastmarkets pricing methodology and specification documents, please go to the Fastmarkets methodology page.