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Launch of East Asia low-carbon primary aluminium differential

Fastmarkets is launching a low-carbon primary aluminium differential, Japan, South Korea to complement its existing premiums in East Asia and to meet market interest in a low-carbon aluminium pricing mechanism.

March 1, 2024
By Chay Chye Leng
Aluminium Asia Pricing notice

The first publication of the low-carbon primary aluminium differential is on Friday March 1 and will be published on the first Friday of every subsequent month.

The specifications are as follows:

MB-AL-0393 Aluminium low-carbon differential P1020A, Japan, South Korea, $/tonne
Carbon Limit: 4tCO2e per tonne of aluminium produced, Scope 1 and 2 emissions
Quality: P1020A or 99.7% minimum Al purity (Si 0.10% max, Fe 0.20% max). Ingot, T-bar, sow
Quantity: Min 100 tonnes
Location: Japan & South Korea
Timing: Within three months
Unit: USD/tonne
Publication: Monthly, first Friday of the month, 4pm London time

*Fastmarkets will define low-carbon aluminium originating from smelters that emit a maximum of 4 tonnes of CO2e per tonne of aluminium produced under Scope 1 and 2 emissions. Scope 1 and 2 includes direct carbon emissions from the smelter itself and indirect emissions from the power source of the smelter.

The price is part of Fastmarkets’ base metals package.

The differential will be assessed as an upcharge or discount on top of the existing primary aluminium main Japanese port (MJP) spot premium, $/tonne and published on a monthly basis.

Fastmarkets will closely track the liquidity and volatility in these markets, with a view to increase frequency if needed.

The differential could be used on top of Fastmarkets’ underlying primary aluminium premiums in East Asia including, but not limited to:
MB-AL-0343 Aluminium P1020A (MJP) spot premium, cif Japan, $/tonne
MB-AL-0001 Aluminium P1020A (MJP) quarterly premium, cif Japan, $/tonne
MB-AL-0307 Aluminium P1020A premium, fca South Korea, $/tonne
MB-AL-0344 Aluminium P1020A premium, cif South Korea, $/tonne

To provide feedback on the differentials above or to become a data submitter, please contact Chay Chye Leng by email at pricing@fastmarkets.com. Please add the subject heading “FAO: Chay Chye Leng, re: East Asia low carbon aluminium.” 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, go to https://www.fastmarkets.com/methodology.

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