PRICING NOTICE: Metal Bulletin runs consultation on acceptable origins for spot MJP aluminium P1020 cif premium

Metal Bulletin is running a one-month consultation to seek feedback on whether to keep excluding certain origins in the assessment of its spot main Japanese ports (MJP) aluminium P1020 cif premium.

At present, Metal Bulletin excludes aluminium P1020 from India, Iran, Egypt, Brazil and from London Metal Exchange warehouses (warrants) for its spot MJP premium assessment because brands from these countries or places have typically attracted a discount to the bulk of the imported tonnage into the spot Japanese market. All other origins and brands complying with our specifications are accepted in the assessment process, including brands from the Middle East, Europe, Canada, Australia, the United States and Russia.

Current specifications:

Description: Aluminium P1020 spot cif main Japanese ports
Price: Aluminium P1020, spot cif main Japanese ports
Type: assessed range
Basis: cif in main Japanese ports at Yokohama, Nagoya and Osaka, premium on top of LME cash prices
Grade: P1020A or 99.7 % Minimum Al purity (Si 0.10% max, Fe 0.20% max)
Origin: excluding Iran, India, Egypt, Brazil and LME warehouses
Currency: USD
Unit: tonne
Min lot size: 100 tonnes
Payment terms: cash against documents (2 days after bill of lading date)
Delivery: within four weeks
Form: Ingot, T-bar, sow
Publication: twice weekly, Tuesday and Friday by 4pm London time
Notes: assessed by the Metal Bulletin bureau in Singapore

However, some market participants have suggested that Metal Bulletin should start accepting more P1020 brands and origins, including some brands from India, to take into account evolving quality of material, changes in Japanese consumers’ demands and in global supply flows.

The consultation will end one month from the date of this pricing notice, on July 26. Depending on feedback, changes will take place from Friday July 27.

To provide feedback on this price or if you would like to provide price information by becoming a data submitter to this price, contact Shivani Singh by email at: pricing@metalbulletin.com. Please add the subject heading “FAO: Shivani Singh, RE: spot MJP aluminium P1020 cif premium”.

To see all Metal Bulletin’s pricing methodology and specification documents go to https://www.metalbulletin.com/prices/pricing-methodology.html.

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