Fastmarkets to include EU CBAM costs with premiums for secondary aluminium billet ddp Europe, primary aluminium billet in-whs Rotterdam: pricing notice

Fastmarkets will include EU Carbon Border Adjustment Mechanism (CBAM) costs in its secondary aluminium billet premium, ddp Europe (MB-AL-0383) and its primary aluminium 6063 extrusion billet premium, in-whs dp Rotterdam (MB-AL-0002) assessments from January 1, 2026, when the definitive period of the EU’s CBAM is set to begin.

The inclusion of CBAM costs with MB-AL-0383 and MB-AL-0002 will enable the assessments to better reflect how the spot billet market is expected to trade from 2026 onward, based on supply and demand fundamentals.  

This means the CBAM certificate costs may not always fully be reflected or passed on from seller to buyer in the spot DDP prices. 

While most secondary billet supplies within Europe are anticipated to be of domestic origin, imported secondary billet is also considered within the assessment. 

This decision does not, therefore, include any calculated CBAM certificate cost component, because this could vary sharply in data submissions depending on several factors: the brand and origin; when the material is customs cleared and the CBAM cost at that time; and how much of the carbon cost is paid in the origin market. 

As of January 1, 2026, the revised specifications will be as follows, with additions in italics:   

MB-AL-0383 – Secondary aluminium billet premium, ddp Europe$/tonne  
Quality: Max 30% primary aluminium, min 20% recovered post-consumer aluminium scrap  
Quantity: Minimum 100 tonnes  
Location: Delivered duty-paid Europe, inclusive of CBAM costs, premium on top of LME cash price  
Timing: Within 3 months  
Unit: USD per tonne  
Payment terms: 30 days after loading (other payment terms normalized) 
Publication: Monthly, first Friday of the month, 3-4pm London time  
Notes: All types of aluminium scrap included. Other scrap-to-primary ratios normalized. 

MB-AL-0002 – Aluminium 6063 extrusion billet premium, in-whs dp 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: In-warehouse Rotterdam duty-paid, inclusive of CBAM costs, 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 3-4pm London time 

These prices are a part of the Fastmarkets base metals package.

Under this change, Fastmarkets will not price individual brands or provide a standalone CBAM reference, but will provide regular updates in pricing rationales and news to provide clear visibility to the fluctuating impact and cost of the regulation on the premiums.

The decision aligns the above billet premium price specifications with the aluminium 6063 extrusion billet premiums, ddp Italy (MB-AL-0300), ddp North Germany (MB-AL-0302) and ddp Spain (MB-AL-0299), all of which will include additional CBAM costs from January 1, 2026, following an extensive consultation

Fastmarkets will continue to review its methodology and will consider additional changes, if there any further amendments to the implementation of CBAM or changes to EU regulations.  

Please note, this decision will not have any impact on historic data related to either of the premium assessments before January 1, 2026.   

This consultation ensures our aluminium billet premium methodology continues to reflect the physical market under indexation, in compliance with the International Organization of Securities Commissions (IOSCO) principles for price reporting agencies (PRAs). This includes all elements of our pricing process, our price specifications and publication frequency. 

You can find the current methodology for MB-AL-0002 Aluminium 6063 extrusion billet premium, in-whs dp Rotterdam and MB-AL-0383 Secondary aluminium billet premium, ddp Europe here.  

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

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