Proposal to include EU CBAM costs in specifications for secondary ddp Europe, primary in-whs dp Rotterdam aluminium billet premium assessments: pricing notice

Fastmarkets proposes including additional EU Carbon Border Adjustment Mechanism (CBAM) costs in the specifications for its MB-AL-0383 secondary aluminium billet premium ddp Europe and MB-AL-0002 aluminium 6063 extrusion billet premium, in-whs dp Rotterdam assessments from January 1, 2026.

The inclusion of CBAM costs in MB-AL-0383 secondary aluminium billet premium, ddp Europe, and MB-AL-0002 Aluminium 6063 extrusion billet premium, in-whs dp Rotterdam from January 1, when the definitive period of the EU’s CBAM is set to begin, would enable the assessments to better reflect how the spot billet market is expected to trade from 2026 onward, based on supply and demand fundamentals. This means the CBAM certificate costs might not always fully be reflected or passed on from seller to buyer in the spot DDP prices.

While most secondary billet supply within Europe is expected to be of domestic origin, imports are also considered within the assessment. 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-0383 Secondary aluminium billet premium, ddp Europe
Quality: Max 30% primary aluminium, min 20% recovered post-consumer aluminium scrap
Quantity: Minimum 100 tonnes
Location: Delivered duty-paid Europe, inclusive of CBAM costs, premium on top of LME cash price
Timing: Within 3 months
Unit: USD per tonne
Payment terms: 30 days after loading (other payment terms normalized)
Publication: Monthly, first Friday of the month, 3-4pm London time
Notes: All types of aluminium scrap included. Other scrap-to-primary ratios normalized.

MB-AL-0002 Aluminium 6063 extrusion billet premium, in-whs dp Rotterdam, $/tonne
Quality: Aluminium Assn specification AA6063: Si 0.2-0.6% max, Mg 0.45-0.9% max, Fe 0.35% max, Cu 0.1% max, Cr 0.1% max, Zn 0.1% max, Ti 0.1% max, Others each 0.05% max, total 0.15% max. Extrusion billet with outside diameter of 6”, 7” and 8”
Quantity: Min 100 tonnes
Location: In-warehouse Rotterdam duty-paid premium, inclusive of CBAM costs, on top of LME cash prices
Timing: Within 3 months
Unit: USD/tonne
Payment terms: Cash against documents (7 days after bill of lading date)
Publication: Weekly. Friday 3-4pm London time

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

Under the 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 above billet premium specifications with the pricing methodology for MB-AL-0300 Aluminium 6063 extrusion billet premium ddp Italy, MB-AL-0302 Aluminium 6063 extrusion billet premium ddp North Germany and MB-AL-0299 Aluminium 6063 extrusion billet premium ddp Spain, all of 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.

The consultation period for this proposed amendment starts from Monday October 27 and will end on Monday November 24. 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 basemetals@fastmarkets.com.

Please add the subject heading “Pricing Methodology Feedback – Primary in-whs Rotterdam, Secondary ddp Europe Aluminium billet and CBAM.” Please send feedback by Monday November 24.

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-0002 Aluminium 6063 extrusion billet premium, in-whs dp Rotterdam and MB-AL-0383 Secondary aluminium billet premium, ddp Europe here.

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