Proposal to amend frequency of P1020A aluminium import premium in Brazil

Fastmarkets proposes to amend the frequency of its P1020A aluminium import premium assessment in Brazil to monthly, from fortnightly.

Brazil has decided not to renew a previous duty-free import quota, which has significantly reduced liquidity and means that the premium is not moving on a regular basis during pricing sessions.

Domestic output became more prevalent after producers Alcoa and South32 decided to restart operations at their Alumar smelter, in northeast Brazil.

Fastmarkets expected that both these changes could slow down deal-making for aluminium imports, and that has been confirmed throughout the first quarter of 2023.

During January and February – according to the latest data published by Brazil’s industry and foreign trade ministry, MDIC – the country imported 25,867 tonnes of unalloyed aluminium.

This was down by 36.58% from 40,787 tonnes in the corresponding period a year before, and 58.63% lower than 62,528 tonnes in January-February 2021. It was also the lowest volume since 2013, before the quota was introduced, when the country imported only 3,371 tonnes in that same time window.

The proposed decrease in the frequency of assessment will affect the following premium:
MB-AL-0022 Aluminium P1020A premium, cif dup Brazilian main ports, $ per tonne

Fastmarkets currently assesses the Brazilian import premium once a fortnight, on a Tuesday, at 3-4pm London time. This premium assessment was launched in September 2014.

The consultation period for this proposed amendment starts on Wednesday March 22 and will end on Monday April 24.

The amendment will then take place, subject to market feedback, on Monday May 1, with the first assessment under the new frequency being published on Tuesday May 30 and every last Tuesday of the month thereafter.

To provide feedback on this assessment, or if you would like to provide price information by becoming a data submitter to this price, please email pricing@fastmarkets.com. Please add the subject heading “FAO: Renato Rostás, re: Brazilian aluminium premium assessment.”

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

What to read next
Fastmarkets proposes to launch FOB Indonesia, Vietnam and India inferred indices for its Australian alumina index.
The publication of Fastmarkets’ MB-CO-0004 cobalt alloy grade, in-whs Rotterdam and MB-CO-0005 cobalt standard grade, in-whs Rotterdam assessments for Friday July 12 were delayed because of a technical error. Fastmarkets’ pricing database has been updated.
Feedback was received during the consultation period of an immaterial nature that would not impact the result of price assessments. Therefore, while no material changes will be made to the methodologies at this stage, clarification indicating that the Effective List price treats changes in annually established discounts during the year as changes in the price. […]
Fastmarkets is inviting feedback from the industry on the pricing methodology for European Packaging Paper and Board as part of its announced annual methodology review process. This consultation, which is open until August 31, 2024 seeks to ensure that our methodologies continue to reflect the physical market under indexation, in compliance with the International Organization […]
In the methodology price specifications, the shorter names PIX Testliner GCC and PIX Fluting GCC will be used instead of PIX Containerboard Testliner Delivered GCC USD/tonne and PIX Containerboard Fluting Delivered GCC USD/tonne. No other changes have been made to the index methodology. For comments and queries, please email hello.foex@fastmarkets.com, indicating “PIX Packaging GCC” in […]
The US government will impose tariffs on steel and aluminium shipped from Mexico that were made elsewhere, in a bid to curb trans-shipment and excess production, the White House said in a statement on Wednesday July 10, a move widely applauded by the pair of metals industries