Proposal to amend alumina fob Brazil delivery window, frequency

Fastmarkets proposes to extend the shipment window of its alumina index inferred, fob Brazil, to allow for greater inclusion of reported liquidity, and to increase the frequency of publication to weekly.

The proposal is to extend the window to 90 days, from two months currently, but deals concluded for loading within 60-90 days will be given a minimum tonnage weighting of 5,000 tonnes.

The index is a tonnage-weighted calculation, where actual transactions carry full weight as reflected by the reported volume, while offers, bids and market participants’ own estimates of the market are weighted at the specified 5,000 tonnes minimum tonnage, as per our methodology.

Fastmarkets has observed an increase in the volume of spot transactions being discarded from the index for being outside its current two-month timing window.

The reason for the minimum tonnage is because some deals for further forward loading have been assessed as reflective of nearby market levels by participants, while in other circumstances cargoes with a future laycan were not seen as reflective of current fundamentals by market participants.

Fastmarkets will continue to track the volume of transactions beyond the current two-month window.

Fastmarkets also invites feedback on whether the proposed change should be for 75 days rather than 90 days.

The current specifications of the index are:
MB-ALU-0003 Alumina index adjustment to fob Australia index, Brazil, $ per dmt
Quality: Smelter-grade alumina, minimum purity of 98.5% Al2O3
Quantity: Min 5,000 tonnes
Location: fob Vila do Conde, Brazil (other Pacific origins normalized)
Timing: within two months
Unit: US$ per dry metric tonne (dmt)
Payment terms: 30 days after loading
Publication: Every second week, 4pm London time
Notes: Bulk carrier

Fastmarkets’ benchmark alumina fob Australia index has a two-month timing window and no changes are proposed for this index.

Fastmarkets is also consulting as to whether the frequency of the Brazil index should be changed to weekly, from its current fortnightly publication, in order to better reflect changes to the market level when transactions take place. Liquidity over the past few months has been inconsistent, however.

The consultation period for this proposed amendment starts from March 24 and will end on April 24. The amendment will then take place, subject to market feedback, on April 27.

To provide feedback on this index, or if you would like to provide price information by becoming a data submitter to this index, please contact Carrie Bone by email at: pricing@fastmarkets.com. Please add the subject heading “FAO: Carrie Bone, re: Alumina index inferred, fob Brazil.”

To see all Fastmarkets’ pricing methodology and specification documents, go to: https://www.fastmarkets.com/about-us/methodology.

What to read next
Fastmarkets has amended the name of the price assessment for nickel ore 1.8% basis 15-20% Fe water content: 30-35% Si:Mg ratio<2 lot size 50,000 tonnes, cif China. The name of the price has been shortened to nickel ore with 1.8% nickel content, cif China to enhance its readability and alignment with other Fastmarkets nickel ore […]
Fastmarkets will launch a European Spruce #2 2x4 16-foot assessment to add transparency to the most imported lumber item from Europe into the United States.
After a month-long consultation period, Fastmarkets has discontinued this price due to low market liquidity. All short-term forecasts associated with this price (or these prices) produced by the Fastmarkets research team, if any, have also been discontinued. If you have any comments on the discontinuation of this price, please contact Natasha Porter by email at: pricing@fastmarkets.com. Please […]
This price is part of the Fastmarkets Scrap package. For more information on our North America Ferrous Scrap methodology and specifications please click here. To get in touch about access to this price assessment, please contact customer.success@fastmarkets.com.
Fastmarkets proposes to amend the load port of its hard coking coal and pulverized coal injection (PCI) spot prices, fob DBCT, to fob eastern Australian ports, from the current basis of Dalrymple Bay Coal Terminal, Australia.
The amendment to the name of the price assessment for nickel ore 1.8% basis 15-20% Fe water content: 30-35% Si:Mg ratio<2 lot size 50,000 tonnes, cif China has been delayed following a reporter error. Fastmarkets decided to amend the name of the price assessment, shortening it to nickel ore with 1.8% nickel content, following a […]