Proposal to launch FCA, P0610 netbacks for aluminium P1020A Rotterdam premiums

Fastmarkets proposes to launch published netback rates for both purity and incoterm differentials for its aluminium P1020A Rotterdam premiums.

The first proposed assessment would be free carrier (FCA) Rotterdam to in-warehouse (in-whs) Rotterdam netback rate.

The second proposed assessment would be primary aluminium purity P0610 to P1020 netback rate.

The launch of the assessed netbacks will allow Fastmarkets to bring additional transparency to the European P1020A market and will complement the existing premium offering.

Both netback rates will be applied only to the existing Rotterdam aluminium premiums and will be available as an inferred premium or standalone rate on the Fastmarkets dashboard.

Fastmarkets proposes to assess the netbacks on a monthly basis, and for them to be published on the first working day of every month.

The proposed price specifications are as follows:
Aluminium P1020A Rotterdam premium fca netback rate
Quality: P1020A or 99.7 % Minimum Al purity (Si 0.10% max, Fe 0.20% max). Ingot
Location: FCA Rotterdam, netback to Fastmarkets aluminium P1020A premium in-whs dup/dp Rotterdam
Unit: USD/tonne
Publication: Monthly, first working day of the month, 3-4pm UK time

Aluminium P1020A Rotterdam premium P0610 netback rate
Quality: P0610 ingot
Location: In-warehouse Rotterdam, netback to aluminium P1020A premium in-whs dup/dp Rotterdam
Unit: USD/tonne
Publication: Monthly, first working day of the month, 3-4pm UK time

Fastmarkets is also proposing to publish inferred price calculations for its P1020A Rotterdam premiums.

An inferred number is a calculation using existing Fastmarkets premiums. The new inferred prices will take the existing midpoint of the underlying premium and add the relevant assessed netback rate.

The proposed inferred calculations would be as follows:
• Aluminium P1020A premium, dp Rotterdam, inferred fca midpoint, $/tonne
• Aluminium P1020A premium, dup Rotterdam, inferred fca midpoint, $/tonne
• Aluminium primary ingot premium, in-whs dp Rotterdam, inferred P0610 midpoint, $/tonne
• Aluminium primary ingot premium, in-whs dup Rotterdam, inferred P0610 midpoint, $/tonne

The consultation period for this proposed launch starts on Tuesday June 6, and will end on July 4. The launch will take place, subject to market feedback, on August 1.

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

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

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