Platts changes incoterm of China alumina assessment to CIF, keeps payment terms unchanged

Effective Jan. 11, 2021, S&P Global Platts has changed its China alumina price assessments to CIF basis from CFR to reflect current market practice.

The change does not affect the Platts Australian alumina daily benchmark assessment of FOB Western Australia.

The change was originally proposed in a subscriber note published on Platts website on Sept. 14, 2020 and may be viewed here:

https://www.spglobal.com/platts/en/our-methodology/subscriber-notes/091420-platts-proposes-incoterm-payment-term-changes-for-alumina-assessments

Platts will normalize any price information reported on a CFR China basis to CIF terms based on the insurance costs at the time of publication. Platts estimates the current price of insurance at around 10 cents/mt.

Additionally, Platts had researched the possibility of changing the payment terms for its alumina assessments. Following market feedback, Platts will keep the payment terms unchanged as L/C 30 days and payment within 30 days of bill of lading.

Platts assesses the China alumina price in $/mt, and also publishes a conversion of the price into Yuan/mt based on daily foreign exchange rates.

The affected assessments are published in Platts Nonferrous Metals Alert fixed pages MTL0005, MTL0650, MTL0678, in Platts Metals Daily, on the Platts Market Center, and in the Platts price database under the codes listed below.

New Assessment Name Previous Name Code Monthly Average Weekly Average Yearly Average

Alumina CIF China Alumina CFR China MMALZ00 MMALZ03 MMALZ04 MMALZ16

Alumina CIF China Yuan/mt Alumina CFR China Yuan/mt MMACA00 MMACA03

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