Proposal to include EU CBAM costs in methodology for aluminium P1020A premium fca dp Italy, Spain: pricing notice

Fastmarkets proposes to include additional EU Carbon Border Adjustment Mechanism (CBAM) costs in its benchmark aluminium P1020A premium fca dp premium assessments for Italy (MB-AL-0316), and Spain (MB-AL-0319) from January 1, 2026, when the definitive period of the EU’s CBAM is set to begin.

The MB-AL-0316 aluminium P1020A premium fca dp Italy and MB-AL-0319 aluminium P1020A premium fca dp Spain assessments would include additional CBAM costs in the same way they currently reflect existing import duties. 
 
The inclusion of CBAM costs would enable the assessments to better reflect how the spot market is expected to trade from 2026 onward, based on supply and demand fundamentals. This means the CBAM certificate costs may not always fully be reflected or passed on from seller to buyer in the spot fca dp prices.
This proposal does not, therefore, include any calculated CBAM certificate cost component, because this could vary sharply in data submissions depending on several factors: the brand and origin; when the material is customs cleared and the CBAM cost at that time; and how much of the carbon cost is paid in the origin market.

The proposed specifications are as follows, with additions in italics:
 
MB-AL-0316 Aluminium P1020A premium, fca dp Italy, $/tonne 
Quality: P1020A or 99.7 % Minimum Al purity (Si 0.10% max, Fe 0.20% max). Ingot 
Quantity: Min 100 tonnes 
Location: Free-carrier duty-paid Italy (north and south of country), inclusive of CBAM costs, premium on top of exchange-listed aluminium price 
Timing: Within 4 weeks 
Unit: USD/tonne 
Payment terms: Cash against documents (7 days after bill of lading date); other terms normalized 
Publication: Weekly. Tuesday 3-4pm London time
 
MB-AL-0319 Aluminium P1020A premium, fca dp Spain, $/tonne 
Quality: P1020A or 99.7 % Minimum Al purity (Si 0.10% max, Fe 0.20% max). Ingot 
Quantity: Min 100 tonnes 
Location: free-carrier duty-paid Spain, inclusive of CBAM costs, premium on top of LME cash prices 
Timing: Within 4 weeks 
Unit: USD/tonne 
Payment terms: Cash against documents (7 days after bill of lading date); other terms normalized 
Publication: Once every two weeks. Tuesday 3-4pm London time

These prices are a part of the Fastmarkets base metals package.

Under this proposal, Fastmarkets would not look to price individual brands or provide a standalone CBAM reference, but would provide regular updates in pricing rationales and news to provide clear visibility to the fluctuating impact and costs of the regulation on the premiums.

The proposal would also align the premiums with the MB-AL-0004 aluminium P1020A premium, in-whs dp Rotterdam, which will include additional CBAM costs from January 2026 following an extensive consultation.

Fastmarkets will continue to review its methodology and will consider additional changes if there any further amendments to the implementation of CBAM or changes to EU regulations. 

The proposed amendment would not have any impact on historic data related to either premium assessment.

The consultation period for this proposed amendment starts from Wednesday October 1 and will end on Friday October 31. The amendment will then take place, subject to market feedback, on January 1, 2026.

To provide feedback on this proposal, or if you would like to provide price information by becoming a data submitter, please contact the Fastmarkets editorial team by email at: pricing@fastmarkets.com and methodologies@fastmarkets.com. Please add the subject heading “Pricing Methodology Feedback – Italy, Spain P1020 aluminium and CBAM.” Please send feedback by Friday October 31. 

Please indicate if comments are confidential. Fastmarkets will consider all comments received and will make comments not marked as confidential available upon request. 

You can find the current methodology for MB-AL-0316 aluminium P1020A premium, fca dp Italy, and MB-AL-0319 aluminium P1020A premium, fca dp Spain here.

To see all Fastmarkets’ pricing methodology and specification documents, go to the Fastmarkets methodology page.

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