Fastmarkets selected as LME’s MJP aluminium premium partner
Fastmarkets, a leading source of pricing data for the global commodity markets, 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 Fastmarkets Aluminium P1020A spot cif main Japanese ports price. Detailed contract specifications will be made available to market participants in the coming months.
In recent years, the Japanese aluminium market has shifted away from the traditional quarterly benchmark premium system to purchase more units on the spot market and reduce its exposure to price volatility. In 2019, the migration continued to accelerate.
The strong correlation between the quarterly and spot premiums is increasing the credibility of the spot premium assessments and reinforcing the use of the spot futures contracts as a valid hedging tool for both spot and quarterly contracts.
“The addition of the Main Japanese Ports contract on the LME highlights the key role Fastmarkets’ prices and premiums play throughout the global aluminium supply chain,” Fastmarkets chief executive officer Raju Daswani said.
On Monday November 25, Fastmarkets will host a webinar on the evolution of MJP aluminium premiums. The webinar will cover:
- an introduction to Fastmarkets Aluminium P1020A cpot cif main Japanese ports price and methodologies
- the move from quarterly to spot pricing in the MJP market
- recent market trends; and
- key market and price drivers.
To register for the Evolution of MJP Aluminium Premiums webinar, please click here.
To learn more about Fastmarkets’ pricing methodology/specifications, please click here.