SUBSCRIBER NOTE: Platts proposes changes to US Aluminum Market price assessment

Platts is proposing to increase the frequency and change the methodology on its all-in US Aluminum Market price assessment for P1020A (symbol MMAAE00), effective April 1, 2015.

The Platts US Aluminum Market price assessment was launched in 1972 as an alternative to producer list pricing, and is a weekly range reflecting the all-inclusive, delivered US Midwest price for P1020A, 99.7% purity high-grade aluminum, for delivery within 30 days, net-30 day payment terms.

The assessment is currently published weekly on Thursdays, and the monthly average uses the low end of each weekly range.

Platts is proposing to increase this assessment to daily and to publish a single value instead of a range.

The assessment would take into account all P1020 trading data obtained through the Platts daily survey of P1020 activity, giving priority to any spot physical all-in transactions, bids or offers.

In the absence of all-in market information, prevailing exchange-traded values plus applicable premiums for delivery to a typical-freight US Midwest aluminum user could be used.

These values would take into account exchange cash values at 2 pm US EST, to capture values more closely aligning with the timing of US deals.

The assessment would be normalized to delivery in the middle of the Platts typical window of 7-30 days using the prevailing Cash to M3 structure.

Other specifications would align with those for the US Transaction premium except volume, where a minimum full 45,000 lb truckload and multiples thereof would be considered for assessment, so long as the delivery of the whole order could be performed within the 7-30 day delivery window.

The typical freight delivery location is determined to be 2.0-2.5 cents/lb from multiple suppliers or ports (freight rates updated January 2015).

Please send all questions and feedback on the proposed methodology change by February 13 to Karen McBeth, karen.mcbeth@platts.com, with a cc to pricegroup@platts.com.

For written comments, please provide a clear indication if comments are not intended for publication by Platts for public viewing.

Platts will consider all comments received and will make comments not marked as confidential available upon request.

The Platts aluminum team will also hold an open discussion on the proposed methodology changes following the Platts Aluminum Symposium, on January 20 at the Westin Kierland Resort in Scottsdale, Arizona.

The session is open to all interested participants free of charge.