Proposal to launch additional low-carbon differential for P1020 aluminium, Europe

The new launch would have no effect on the existing P1020A low-carbon differential in Europe and would complement the current offering.

To provide further transparency to the market, and increase the pool of liquidity, Fastmarkets is now proposing to capture low-carbon differentials concluded on a longer-term basis.

The new proposed differential will capture any low-carbon differential achieved for transactions within a 3-12-month timing window. This would be in addition to the existing differential, which captures liquidity at 0-3 months.

The proposed launch reflects the evolving low-carbon aluminium marketplace which has developed since the launch of the initial European differentials in 2021.

The methodology for the current low-carbon differentials can be found here.

The proposed specification is as below:

Aluminium low-carbon differential P1020A, 3-12 months, Europe, $ per tonne
Carbon limit: 4tCO2e per tonne of aluminium produced, Scope 1 and 2 emissions
Quality: P1020A or 99.7% minimum Al purity (Si 0.10% max, Fe 0.20% max). Ingot
Quantity: Min 100 tonnes
Location: Europe
Timing: Between 3 and 12 months
Unit: USD per tonne
Publication: Monthly, first Friday of the month, 4pm London.

The proposed launch in this consultation does not affect this assessment:
MB-AL-0381 Aluminium low-carbon differential P1020A, Europe, $ per tonne.

Nor would it affect these P1020A inferred prices:
MB-AL-0377 Aluminium P1020A premium, in-whs dup Rotterdam, inferred low-carbon midpoint, $ per tonne
MB-AL-0378 Aluminium P1020A premium, in-whs dp Rotterdam, inferred low-carbon midpoint, $ per tonne.

This price would be part of the Fastmarkets base metals package.

The consultation period for this proposed amendment starts from Tuesday August 13 and will end on Friday September 13.

The amendment will then take place, subject to market feedback, with the first publication on October 4.

To provide feedback on this price or if you would like to provide price information by becoming a data submitter to this price, please contact Imogen Dudman by email at: pricing@fastmarkets.com. Please add the subject heading “FAO: Imogen Dudman re: Aluminium low-carbon differentials.”

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

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