Final decision on open consultation on methodology review for aluminium primary foundry alloy silicon 7 ingot premium, ddp Germany and ddp Eastern Europe in relation to CBAM

Fastmarkets invited feedback from the industry on the pricing methodology for its assessment of the aluminium primary foundry alloy silicon 7 ingot premium, ddp Germany and ddp Eastern Europe, ahead of the definitive period for the EU’s Carbon Border Adjustment Mechanism (CBAM), which will start in January 2026.

The consultation was carried out between January 8, 2025, and March 14, 2025.

During the extensive consultation, Fastmarkets received comprehensive and wide-ranging feedback from a broad cross-section of the PFA value chain.

The majority of the market feedback received during the consultation supported Proposal 1, with most market participants preferring its simpler, more coherent mechanism for reflecting CBAM costs to that of Proposal 2.

Proposal 1
• Additional CBAM costs will be incorporated into the aluminium primary foundry alloy silicon 7 ingot premium, ddp Germany and ddp Eastern Europe, from January 2026.
• The aluminium primary foundry alloy silicon 7 ingot premium, ddp Germany and ddp Eastern Europe will therefore become inclusive of additional CBAM costs.
• With this proposal, Fastmarkets would not look to price individual brands or publish a separate CBAM reference, but would instead publish regular updates in pricing rationales and news coverage about the effect of CBAM on the assessed premiums.

Reporters may apply expert judgement to exclude data deemed unrepresentative, questionable or unreliable prior to the final assessment. All discarded data will be explained in the rationale.

This methodology will be subject to change if there any further amendments to the implementation of CBAM. If there are any changes to the EU regulation, Fastmarkets will propose another consultation to adjust this methodology accordingly.

This consultation sought to ensure that our methodologies continue 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.

The current methodology for aluminium primary foundry alloy silicon 7 ingot premium, ddp Germany and ddp Eastern Europe can be found here:

To see all Fastmarkets’ pricing methodology and specification documents, go to: https://www.fastmarkets.com/methodology

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