Open consultation on methodology for aluminium P1020A premium in-whs dup, dp Rotterdam in relation to the EU’s carbon border adjustment mechanism

Fastmarkets is inviting feedback on the pricing methodology for MB-AL-0004 aluminium P1020A premium, in-whs dp Rotterdam and MB-AL-0346 aluminium P1020A premium, in-whs dup Rotterdam ahead of the definitive period of the European Union’s Carbon Border Adjustment Mechanism which starts from January 2026.

This consultation, which is open until January 29, 2025, seeks to ensure that our methodologies continue to reflect the physical market in light of future regulations and their financial implications.

You can find the current methodology for MB-AL-0004 aluminium P1020A premium, in-whs dp Rotterdam and MB-AL-0346 aluminium P1020A premium, in-whs dup Rotterdam here.

Fastmarkets is considering and invites feedback on the following options:

Proposal 1

  • Additional CBAM costs will become embedded within MB-AL-0004 from January 2026.
  • MB-AL-0004 will therefore become inclusive of additional CBAM costs, in the same way that it currently reflects the import duty.
  • This proposal will have no impact on MB-AL-0346 which will remain exclusive of any import duty or CBAM related cost.
  • Under this proposal, Fastmarkets would not look to price individual brands or provide a standalone CBAM reference, but would provide regular updates in pricing rationales and news to give clear visibility to the fluctuating impact and costs of the regulation on the assessed premium.

Proposal 2

  • Fastmarkets will launch a third P1020 aluminium reference in Rotterdam that will be inclusive of all duty and CBAM related costs.
  • This proposal would have no impact on MB-AL-0004 and MB-AL-0346 or the existing data collection methodology associated with either premium.

Neither proposal will have any impact on historic data relating to either premium assessment.

Please note that these proposals will be subject to change following industry feedback.

To provide feedback on this consultation, 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: Rotterdam P1020 aluminium and CBAM.”

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, please go to https://www.fastmarkets.com/methodology.

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