PRICING NOTICE: Proposal to amend methodology for Aluminium P1020 cif main Japanese ports (MJP) premiums

Metal Bulletin proposes changes to the pricing methodology for its Aluminium P1020 cif quarterly main Japanese ports (MJP) premium and Aluminium P1020 cif MJP spot premium.

Aluminium P1020 cif quarterly main Japanese ports (MJP) premium
Metal Bulletin plans to update the methodology to include confirmed deals from at least one major consumer (instead of two consumers currently) and confirmed deals with traders. This is to reflect the increasing volumes of deals taking place between traders and producers for the settling of this benchmark. The methodology will continue to be considered settled if deals with three producers are reported to us.

Metal Bulletin tries to ensure both the buy and sell side of deals are reported to us, however, the 30,000-tonne threshold is all the total deals reported to us and not unique business.

Metal Bulletin is also reclassifying certain market participants involved in the talks such as Panasonic and Sumitomo Chemicals who were considered consumers to trading houses because a large part of their trading activity is not for their own consumption but for third-party trading.

The main overseas producers involved in the quarterly negotiations are Rio Tinto, Alcoa, South32 and Rusal. Indian and Middle Eastern producers and their material are not considered during the settling of the quarterly benchmark.

Aluminium P1020 cif spot main Japanese ports (MJP) premium
Metal Bulletin plans to increase the frequency of the assessment to twice weekly to more accurately ascertain moves in the premium taking into account deals, bid, offers, deals heard and assessments during the week. This will result in a more liquid assessment, capturing moves in the premiums twice in a week.

This would also bring the spot MJP pricing frequency, in line with the proposed changes to US Midwest premium pricing frequency, to twice-weekly.

Currently, an assessment of the spot MJP aluminium premium is produced every Tuesday. Under the adjusted methodology, the premium would be assessed every Tuesday and Friday.

Metal Bulletin is also proposing to continue pricing a spot low-high range and to stop assessing a single spot MJP assessment number.

The consultation period for these proposed amendments will end one month from the date of this pricing notice on March 20, with changes taking place from March 21.

To provide feedback on this price or if you would like to provide price information by becoming a data submitter to this price, please contact Shivani Singh by email at: pricing@metalbulletin.com. Please put ‘FAO: Shivani Singh, re: Aluminium P1020 cif main Japanese ports (MJP) premium’ in the subject line.

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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