Proposal to amend aluminium low-carbon differential P1020A, Europe

Following an extended consultation with the market over the launch of a second differential to capture longer-term liquidity for low-carbon aluminium in Europe, Fastmarkets has decided to suspend the proposed launch.

Instead, following comprehensive market feedback, Fastmarkets now proposes to extend the timing window of the existing MB-AL-0381 aluminium low-carbon differential P1020A, Europe to include any transaction data concluded within up to 18 months.

The extension of the existing 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 proposal is an enhancement of the existing differential and will not impact historical data.

The proposed new specifications are listed below, with the proposed amendments in italics:

MB-AL-0381 Aluminium low-carbon differential P1020A, Europe, $/tonne
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
Quantity: Min 100 tonnes
Location: Europe
Timing: Up to 18 months
Unit: USD per tonne
Publication: Monthly, first Friday of the month, 4pm London.
Note: Includes spot and contract liquidity

The following inferred prices would also be affected by this amendment:
MB-AL-0377 Aluminium P1020A premium, in-whs dup Rotterdam, inferred low-carbon midpoint, $/tonne
MB-AL-0378 Aluminium P1020A premium, in-whs dp Rotterdam, inferred low-carbon midpoint, $/tonne

This price is a part of the Fastmarkets base metals package.

The consultation period for the above proposal will start on Tuesday October 29 and end on Tuesday November 26, with the amendment, subject to feedback, taking effect from Friday, December 6.

All historical data relating to the assessment prior to the amendment will remain available in the pricing section of the Fastmarkets website.

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

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, please go to https://www.fastmarkets.com/methodology.