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As part of the ongoing open consultation regarding IOSCO-audited price assessments, Fastmarkets has engaged with the industry regarding its stance specifically on Russian material in its aluminium premiums methodology.
The current aluminium premiums methodology states: “Fastmarkets follows the guidance of the London Metal Exchange and its regulators regarding any suspensions or delisting of brands for political reasons or economic sanctions.”
But the methodology will be updated to reflect the decision that Fastmarkets will follow international sanctions in regard to suspending brands from its price reporting process.
This means that if the LME decides to ban Russian material without any international sanctions being imposed, Russian material will continue to be accepted into the price reporting process.
On October 6, the LME issued a discussion paper asking for market feedback on the ongoing acceptability of Russian metal brands on the exchange. The discussion paper is open until October 28.
Fastmarkets reviews all pricing data carefully to ensure that its price assessments reflect the “open and competitive” market level. Reporters therefore may apply expert judgment to exclude data deemed unrepresentative or unreliable prior to consideration of the final assessment.
This approach will be taken for all global aluminium premiums, including aluminium products and low-carbon aluminium.
The open consultation is open until October 28, 2022.
The change to the methodology will take effect from October 29, 2022.
To provide feedback on the aluminium methodology, or any IOSCO methodology, please contact pricing@fastmarkets.com. Please add the subject heading “FAO: Alice Mason, re: aluminium methodology.”
Please specify if your response is confidential. Opinions offered in confidential responses may be referenced but will not be attributed in any way.