PRICING NOTICE: Proposal to launch 7 new aluminium prices from calcined pet coke to extrusion

Fastmarkets proposes to launch seven new aluminium prices, including calcined pet coke, extrusion and flat-rolled product assessments, that will expand our coverage of the aluminium market from upstream to downstream.

The new prices include two monthly assessments for aluminium anode grade calcined pet coke in the United States and China. This will help bring more visibility in the aluminium cost curve since the material is a critical ingredient in the production of aluminium.

Fastmarkets also proposes to start assessing aluminium 6063 extrusion conversion margins in Germany and the US, as well as 1050/5052 sheet product margins in Germany and the US and 5000 sheet margins in China, which will complement its coverage of the global aluminium supply chain.

The proposed specifications are listed in full below.

Fastmarkets MB's research team had until now published indicative prices for these seven markets and under this proposal, Fastmarkets’ pricing team will start publishing price assessments in line with IOSCO standards and benchmark regulations. The addition of these prices will reinforce Fastmarkets’ position as the leading global aluminium benchmark provider by offering further options for subscribers and by bringing transparency to the aluminium market at a time of great price volatility.

These prices will be published on the first Thursday of each month and be available in the Fastmarkets MB price book, Excel add-in and Mydesk platforms.

The consultation period for this proposed launch will end on Wednesday April 3. Subject to market feedback, the launch will take place on Thursday April 4.

To provide feedback on this proposal or if you would like to provide price information by becoming a data submitter to these any of these seven prices, contact Perrine Faye by email at: pricing@fastmarkets.com. Please add the subject heading FAO: Perrine Faye, re: CPC, FRP and extrusion prices.

To see all Fastmarkets’ pricing methodology and specification documents go to https://www.metalbulletin.com/prices/pricing-methodology.html.

Specifications

Calcined pet coke

US
Assessment: Calcined pet coke, fob US Gulf coast
Grade: Aluminium anode grade, 3% sulfur
Quantity: 5,000 tonnes
Location: fob US Gulf coast
Timing: Within 4 weeks
Publication: Monthly, first Thursday of the month, 3-4pm London time

CHINA
Assessment: Calcined pet coke, fob China 
Grade: Aluminium anode grade, 3% sulfur
Quantity: 5,000 tonnes
Location: fob China
Unit: USD/tonne
Timing: Within 4 weeks
Publication: Monthly, first Thursday of the month, 3-4pm London time


Extrusion aluminium products

EUROPE
Assessment: Aluminium 6063 extrusion conversion margin, ex-works Germany
Grade: Standard extruded shapes and dimensions
Quantity: 500 kg
Location: ex-works Germany
Unit: USD/tonne
Timing: Within 4 weeks
Payment terms: 30-day payment terms, other payment terms normalized
Publication: Monthly, first Thursday of the month, 3-4pm London time
Notes: Margins are on top of LME cash prices and Fastmarkets MB’s all-in in-warehouse Rotterdam duty-paid extrusion billet premium, which includes the P1020A premium and the billet premium for converting metal to billet.

US
Assessment: Aluminium 6063 extrusion conversion margin ex-works US Midwest
Grade: Standard extruded shapes and dimensions
Quantity: 500 kg
Location: ex-works US Midwest
Unit: US cents/lb
Timing: Within 4 weeks
Payment terms: 30-day payment terms, other payment terms normalized
Publication: Monthly, first Thursday of the month, 3-4pm London time
Notes: Margins are on top of LME cash prices, Fastmarkets MB’s US Midwest billet premium and Fastmarkets MB’s US Midwest P1020A premium.


Flat rolled aluminium products

EUROPE
Assessment: Aluminium FRP 1050 sheet conversion margin ex-mill Germany
Grade: 1050 H14 sheet 1.25-1.5 by 2m; Gauge 1.0-3mm. Margins for coil accepted and netted back to sheet if possible
Quantity: 5 tonnes
Location: ex-mill Germany
Unit: USD/tonne
Timing: Within 4 weeks
Payment terms: 30-day payment terms, other payment terms normalized
Publication: Monthly, first Thursday of the month, 3-4pm London time
Notes: Margins are on top of LME cash prices and Fastmarkets MB’s P1020A in-warehouse Rotterdam duty-paid premium.

US
Assessment: Aluminium FRP 5052 sheet conversion margin ex-mill US
Grade: 5052 H32 smooth sheet 1.25-1.5 by 2m; Gauge 1.0-3mm. Margins for coil accepted and netted back to sheet if possible
Quantity: 5 tonnes
Location: ex-works US; other locations normalized if possible
Unit: US cents/lb
Timing: Within 4 weeks
Payment terms: 30-day payment terms, other payment terms normalized
Publication: Monthly, first Thursday of the month, 3-4pm London time
Margins are on top of LME cash prices and Fastmarkets MB’s P1020A US Midwest P1020A duty-paid premium.

CHINA
Assessment: Aluminium FRP 5000 sheet conversion margin ex-mill China
Grade: 5000 export indicator price. H32 1.25-1.5 by 2m; Gauge 1.0-3mm. Margins for coil accepted and netted back to sheet if possible
Quantity: 5 tonnes
Location: ex-mill China
Unit: USD/tonne
Timing: Within 4 weeks
Payment terms: 30-day payment terms, other payment terms normalized
Publication: Monthly, first Thursday of the month, 3-4pm London time
Notes: Margins are on top of LME cash prices

[This article was updated to correct the China calcined pet coke specification to basis fob China instead of ex-works China, as previously stated. The Fastmarkets non-ferrous methodology document is correct and has not been amended.]

Perrine Faye

perrine.faye@fastmarkets.com

Published

Perrine Faye

March 08, 2019

11:07 GMT

London