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

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

This consultation, which is open until March 14, 2025, seeks to ensure that our methodologies continue to reflect the physical market with respect to impending EU regulations.

You can find the current methodology for MB-AL-0339 aluminium primary foundry alloy silicon 7 ingot premium, ddp Germany, $/tonne and MB-AL-0340 aluminium primary foundry alloy silicon 7 ingot premium, ddp Eastern Europe, $/tonne here.

Fastmarkets welcomes feedback on the following options:

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.
  • 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 impact of CBAM on the assessed premiums.

Proposal 2

  • Fastmarkets will launch additional aluminium foundry alloy premiums, reference in ddp Germany and ddp Eastern Europe, that include the CBAM cost.
  • This proposal would have no impact on MB-AL-0339 and MB-AL-0340.
  • There would be no change to the existing data collection methodology associated with either premium.

Neither proposal will have any impact on historic data of MB-AL-0339 and MB-AL-0340.

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 Sayaka Kurata by email at: pricing@fastmarkets.com. Please add the subject heading “FAO: Sayaka Kurata re: PFA 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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