Proposal to reduce frequency, increase timing window of US low-carbon aluminium differentials

The first proposed amendment would decrease the differentials’ publishing frequency to once monthly from once weekly. The monthly frequency matches Fastmarkets’ low-carbon aluminium differentials in other regions and better reflects current market liquidity.

The second proposed amendment would extend the timing window to include any transaction data concluded within up to 18 months from three months previously. The extension of the timing window will allow for an inclusive approach to an evolving low-carbon marketplace, allowing Fastmarkets to capture all reported transaction data under one robust differential.

The new proposed specifications for the premium will be as follows (changes in italics):

MB-AL-0389 Aluminium low-carbon differential P1020A, US Midwest, US cents/lb
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,
T-bar, sow
Quantity: Min 100 tonnes
Location: Delivered consumer works Midwest, differential on top of P1020A premium and exchange-listed aluminum price
Unit: US cents per lb
Timing: Up to 18 months
Publication: Monthly, first Friday of the month, 3-4pm London time

MB-AL-0390 Aluminium low-carbon differential value-added product, US Midwest, US cents/lb
Carbon limit: 4tCO2e per tonne of aluminium produced, Scope 1 and 2 emissions.
Type: Extrusion billet, primary foundry alloy, wire rod, slab
Quantity: Min 100 tonnes
Location: Delivered into US Midwest region, differential on top of value-added product premium and exchange-listed aluminum price
Unit: US cents per lb
Timing: Up to 18 months
Publication: Monthly, first Friday of the month, 3-4pm London time

The consultation period for these proposed changes starts from Thursday November 21 and will end on Monday December 23, with an update published on that day. The assessments scheduled for Friday December 27 would then be skipped, with the first monthly assessments taking place on Friday January 3, subject to market feedback.

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 Yasemin Esmen by email at pricing@fastmarkets.com. Please add the subject heading “FAO: Yasemin Esmen, re: US low-carbon aluminium 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.

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