PRICING NOTICE: Proposal to change the frequency of the US Midwest aluminium premium (Repeated)

Metal Bulletin and American Metal Market are seeking feedback on a proposal to change the frequency of its assessment of the US P1020 spot premium to twice weekly.

An initial consultation with market participants has indicated support, with participants noting that they would welcome an increase in the frequency of the assessment and would be more likely to use the price in its commercial contracts.

The change in frequency will allow Metal Bulletin and American Metal Market to more accurately ascertain moves in the premium, taking into account deals done in different parts of the week, resulting in a more liquid assessment.

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

The specification for our P1020 premium assessment is as follows:

Aluminum P1020 delivered US Midwest
Type: Assessed range
Basis: Delivered consumer works Midwest US, premium on top of LME cash prices
Grade: P1020A or 99.7 % minimum aluminium purity
(silicon 0.10% maximum, iron 0.20% maximum)
Currency: US dollars 
Unit: per lb
Minimum lot size: 100 tonnes
Payment terms: 30 days, other payment terms normalized
Delivery window: Within four weeks
Form: Ingot

Metal Bulletin and American Metal Market are now accepting feedback on the proposed change, allowing for a four-week consultation period ending Monday March 5.

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 Kirk Maltais by email at: kirk.maltais@amm.com or US non-ferrous editor Tom Jennemann at tom.jennemann@metalbulletin.com. Please add the subject heading FAO: Kirk Maltais/Tom Jennemann, re: US Midwest P1020 aluminium premium.

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

NOTE: This notice was amended on February 22 to reflect a change in the minimum lot size from 25 tonnes to 100 tonnes, as per Metal Bulletin’s change to its aluminum premium methodology last year.

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