The launch of this netback follows a consultation period that ended on Tuesday July 4 and will allow Fastmarkets to bring additional transparency to the European P1020A market.
The majority of market feedback was in support of Fastmarkets launching the purity differential.
The netback will be applied only to existing Rotterdam aluminium premiums and will be available as both an inferred premium and a standalone rate on the Fastmarkets dashboard.
The netback will be assessed on a monthly basis and published on the first working day of every month, starting on August 1. If the first of the month falls on a UK holiday, the netback will be published on the next working day.
The specification will be as follows:
Aluminium P1020A Rotterdam premium P0610 netback rate
Quality: P0610 ingot
Location: In-warehouse Rotterdam, netback to aluminium P1020A premium in-whs dup/dp Rotterdam
Unit: USD/tonne
Publication: Monthly, first working day of the month, 3-4pm UK time
Fastmarkets will also publish inferred price calculations for its P1020A Rotterdam premiums related to the above.
An inferred number is a calculation using existing Fastmarkets premiums. The new inferred prices will take the existing midpoint of the underlying premium and add the relevant assessed netback rate.
The proposed inferred calculations will be as follows:
• Aluminium primary ingot premium, in-whs dp Rotterdam, inferred P0610 midpoint, $/tonne
• Aluminium primary ingot premium, in-whs dup Rotterdam, inferred P0610 midpoint, $/tonne
As part of the initial consultation, Fastmarkets also proposed to launch a free carrier (FCA) Rotterdam to in-warehouse Rotterdam (in-whs) netback.
Following consultation feedback Fastmarkets has made the decision not to launch this netback, with participants noting difficulty in providing a consistent rate across the market.
But Fastmarkets will continue to internally monitor the incoterm netback, applying editorial judgement to FCA netbacks during the pricing process.
To provide feedback on this price, or if you would like to provide price information by becoming a data submitter, please contact Imogen Dudman by email at pricing@fastmarkets.com. Please add the subject heading “FAO: Imogen Dudman re: P0610 netback rate.”
To see all Fastmarkets’ pricing methodology and specification documents, go to https://www.fastmarkets.com/about-us/methodology.
