Proposal to amend aluminium P1020A methodology for Europe, US, Japan
Fastmarkets proposes to amend its IOSCO-accredited aluminium P1020A premium methodology to allow for flexibility on the underlying futures price used.
The current methodology states that the premiums are on top of the London Metal Exchange cash price. Fastmarkets proposes to amend this to clarify that, in addition to the LME, its premiums can be used with underlying futures aluminium prices on the Chicago Mercantile Exchange. The choice is down to industry market participants.
The specifications behind Fastmarkets’ aluminium premiums are aligned with those of either exchange.
The premiums the change relates to are as follows:
- MB-AL-0346 Aluminium P1020A premium, in-whs dup Rotterdam, $/tonne
- MB-AL-0004 Aluminium P1020A premium, in-whs dp Rotterdam, $/tonne
- MB-AL-0316 Aluminium P1020A premium, fca dp Italy, $/tonne
- MB-AL-0343 Aluminium P1020A (MJP) spot premium, cif Japan, $/tonne
- MB-AL-0020 Aluminium P1020A premium, ddp Midwest US, US cents/lb
The consultation will run for four weeks, beginning on Tuesday March 7 and ending on Tuesday April 4. Subject to market feedback, the update will be effective from Tuesday April 11, 2023.
To provide feedback, or if you would like to provide price information by becoming a data submitter to this price assessment, please contact Alice Mason by email at email@example.com. Please add the subject heading “FAO Alice Mason, re Aluminium P1020A methodology.”
To see all Fastmarkets’ pricing methodology and specification documents, go to https://www.fastmarkets.com/about-us/methodology.