Proposal to launch European secondary aluminium billet premium

Fastmarkets proposes to launch a secondary aluminium billet delivered duty paid Europe premium in response to the recent growth in the secondary market.

The launch of a secondary aluminium billet premium assessment will allow Fastmarkets to bring additional transparency to the aluminium value-added product market.

The secondary aluminium billet premium will also complement the existing suite of Fastmarkets primary aluminium assessments, alongside Fastmarkets’ low-carbon differential for value-added-products.

The low-carbon differentials for P1020 and value-added products have widened during 2022 amid growing demand for lower-carbon products.

With interest in sustainability in the aluminium sector growing, market participants told Fastmarkets that there is growing need for transparency in the sector and its price relation to primary aluminium – with some noting that green demand could push secondary billet premiums above primary billet premiums.

Fastmarkets proposes to price the market on a monthly basis, publishing on the first Friday of the month – the same pricing schedule as Fastmarkets’ low-carbon aluminium differentials.

The proposed price specification is as follows:

– Secondary aluminium billet premium, ddp Europe
– Quality: Minimum 50% scrap
– Quantity: Minimum 100 tonnes
– Location: Delivered duty-paid Europe, premium on top of LME cash price
– Timing: Within 3 months
– Unit: USD per tonne
– Payment: 30 days after loading (other payment terms normalized)
– Publication: 3-4pm. Monthly, first Friday.
– Note: Other scrap-to-primary ratios normalized.

Fastmarkets invites feedback from the industry on whether the methodology should specify whether pricing should be done of post-consumer or extrusion scrap. Fastmarkets also invites market feedback on other minimum or maximum scrap and primary aluminium ratios.

The consultation period for this proposed launch starts on Friday November 4 and will end on December 2. The launch will take place, subject to market feedback, on January 6.

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 Carrie Bone by email at pricing@fastmarkets.com. Please add the subject heading ‘FAO: Carrie Bone re: secondary aluminium billet’

To see all Fastmarkets’ pricing methodology and specification documents click on this link.

What to read next
Fastmarkets launched assessments for MB-FEM-0008 green ferroalloy domestic, ferro-manganese max 7% C, 65% Mn min, differential to FeMn assessment, in-whs China and MB-FEM-0009 green ferroalloy domestic, ferro-manganese max 7% C, 65% Mn min, weekly inferred price, in-whs China on Friday November 1.
Fastmarkets’ weekly price assessments for Polish long steel were published on Thursday October 31, one day ahead of schedule due to a public holiday in Poland on November 1.
Fastmarkets launches AG-TLW-0036 tallow, max 15% ffa, fob Santos, $/tonne; AG-TLW-0037 bleachable fancy tallow, max 5% ffa, cif Sao Paulo, Real/kg; and AG-TLW-0038 bleachable fancy tallow, max 3.5% ffa, cif Sao Paulo, Real/kg on Thursday October 31.
A new Chinese state-owned enterprise (SOE) called China Resources Recycling Group (CRRG) has been established to build a national platform for recycling and reusing resources, according to an announcement from Chinese officials on October 18. While details of the company's specific plans remain scarce, market participants remain concerned about weak market fundamentals, sources told Fastmarkets..
After a consultation period, Fastmarkets has discontinued the price due to a lack of liquidity and production of the commodity. All short-term forecasts associated with this price produced by the Fastmarkets research team, if any, have also been discontinued. If you have any comments on the discontinuation of this price, please contact Zihao Li by email […]
Fastmarkets proposes to amend the timing window of its MB-AL-0381 aluminium low-carbon differential P1020A, Europe from up to three months to up to 18 months.