Launch of three aluminium import premiums for Mexico

Fastmarkets is launching assessments of the MB-AL-0407 aluminium P1020A premium, cif Mexico, and the MB-AL-0406 aluminium 6063 extrusion billet premium, cif Mexico, on Tuesday March 11, and will also launch an assessment of the MB-AL-0408 aluminium low-carbon differential P1020A, cif Mexico, on Tuesday March 25.

After a consultation period, Fastmarkets is launching assessments of the three premiums for imported primary aluminium in Mexico: a P1020A premium, a low-carbon differential for P1020A and a 6063 extrusion billet premium — all on a CIF basis for the main ports of the country.

Mexico does not produce primary aluminium, it only imports it. These launches reflect a growing and liquid Mexican aluminium market as well as the need for transparency and price references in the country.

In addition, the threat of 25% tariffs on Mexican imports being imposed by the US government is creating a new dynamic in the region that will be captured by these new references.

There also is an evolving marketplace for low-carbon aluminium in North America in general, which Fastmarkets has been partially monitoring since the launch of two low-carbon aluminium differentials for the US market in 2023. This trend is expected to continue to grow globally while the industry increasingly focuses on decarbonization.

The current methodology for the low-carbon differentials can be found here: https://www.fastmarkets.com/methodology/metals/aluminium-low-carbon-differential/

The specifications for the new premium assessments are as follows:

MB-AL-0407 Aluminium P1020A premium, cif Mexico, $ per tonne
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: CIF Mexico main ports Veracruz, Altamira or Manzanillo (other ports normalized); premium on top of LME exchange-listed aluminium price
Unit: USD per tonne
Timing: Any transaction data concluded within 4 weeks
Payment terms: Cash against documents (within 7 days after bill of lading date), other payment terms normalized
Publication: Fortnightly, Tuesdays, 3-4pm London time.

MB-AL-0406 Aluminium 6063 extrusion billet premium, cif Mexico, $ per tonne
Quality: Extrusion billet AA6063. Billet with diameter of 7in, 8in, 9in and 10in
Quantity: Min 100 tonnes
Location: CIF Mexico main ports Veracruz, Altamira or Manzanillo (other ports normalized); premium on top of LME exchange-listed aluminium price
Unit: USD per tonne
Timing: Any transaction data concluded within 3 months
Payment terms: Cash against documents (within 7 days after bill of lading date), other payment terms normalized
Publication: Fortnightly, Tuesdays, 3-4pm London time.

MB-AL-0408 Aluminium low-carbon differential P1020A, cif Mexico, $ per tonne
Carbon limit: 4 tCO2e 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: CIF Mexico main ports Veracruz, Altamira or Manzanillo (other ports normalized); differential on top of P1020A premium and LME exchange-listed aluminium price
Unit: USD per tonne
Timing: Any transaction data concluded within 18 months
Publication: Monthly, last Tuesday of the month, 3-4pm London time.

These prices will be part of the Fastmarkets base metals package.

To provide feedback on these prices, or if you would like to provide price information by becoming a data submitter to those prices, please contact Letícia Simionato by email at pricing@fastmarkets.com. Please add the subject heading “FAO: Letícia Simionato re: Mexico aluminium premiums.”

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.