Final decision on open consultation on methodology review for aluminium extrusion billet premiums ddp Italy, ddp North Germany, ddp Spain in relation to CBAM

Fastmarkets invited feedback from the industry on the pricing methodology for aluminium 6063 extrusion billet premiums ddp Italy, ddp North Germany and ddp Spain, ahead of the definitive period of the EU’s Carbon Border Adjustment Mechanism (CBAM), which will start from January 2026.

The consultation was carried out between December 12, 2024, and February 28, 2025.

During the extensive consultation, Fastmarkets received comprehensive and wide-ranging feedback from a broad cross-section of the aluminium billet value chain.

Proposal 1 was favored the most by market participants in the consultation, because of its simpler, more coherent mechanism for reflecting CBAM costs than Proposal 2.

Proposal 1
• Additional CBAM costs will be incorporated into aluminium 6063 billet premiums ddp Italy, ddp North Germany and ddp Spain from January 2026.
• As a result, any additional CBAM costs will be included in aluminium 6063 billet premiums ddp Italy, ddp North Germany and ddp Spain.
• With this proposal, Fastmarkets would not price specific brands or publish a CBAM reference, but would instead provide consistent updates in pricing rationales and news coverage about the effect of CBAM on the premiums for materials identified under price codes MB-AL-0300, MB-AL-0380 and MB-AL-0299.

Reporters may apply expert judgement to exclude data deemed unrepresentative, questionable or unreliable prior to the final assessment. All discarded data will be explained in the rationale.

This methodology will be subject to change if there any further amendments to the implementation of CBAM. If there are any changes to the EU regulation, Fastmarkets will propose another consultation to adjust this methodology accordingly.

This consultation sought to ensure that our methodologies continue to reflect the physical market under indexation, in compliance with the International Organization of Securities Commissions (IOSCO) principles for Price Reporting Agencies (PRAs). This includes all elements of our pricing process, our price specifications and publication frequency.

The current methodology for the Aluminium 6063 extrusion billet premium, ddp Italy (Brescia region), and the Aluminium 6063 extrusion billet premium, ddp North Germany (Ruhr region) can be found here:

The current methodology for the Aluminium 6063 extrusion billet premium, ddp Spain can be found here:

To see all Fastmarkets’ pricing methodology and specification documents, go to: https://www.fastmarkets.com/methodology.

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