Platts changes European P1020 aluminum premiums to open-origin, cash payment terms

Platts, part of S&P Global Commodity Insights, has moved its daily European P1020 aluminum Duty Paid and Duty Unpaid IW Rotterdam premium assessments to an open-origin basis, away from a Good Western definition, effective Feb. 1.

The revision of the origin specification reflects market feedback that the use of the Good Western term for aluminum traded in Europe has fallen significantly.

Under the change, open-origin aluminum spot bids, offers and trades typically take precedence over information containing a specific origin exclusion.

Platts has also moved payment term specifications to a cash against-documents basis, from net 30-day payment terms, also effective Feb. 1, to better reflect actual trading activity and provide more clarity for the in-warehouse Rotterdam aluminum market.

Platts initially proposed the specification changes on Nov. 20, 2023, in a subscriber note available at https://www.spglobal.com/commodityinsights/en/our-methodology/subscriber-notes/112023-platts-proposes-to-change-european-p1020-aluminum-premiums-to-open-origin-cash-payment-terms

The decision to implement the proposed changes was communicated on Jan. 4, 2024, in a subscriber note available at https://www.spglobal.com/commodityinsights/en/our-methodology/subscriber-notes/010424-platts-to-change-european-p1020-aluminum-premiums-to-open-origin-cash-payment-terms

Revised specifications are as follows:

Full assessment specifications are outlined in the Global Nonferrous Metals specifications guide, available at /content/dam/spglobal/ci/en/documents/platts/en/our-methodology/methodology-specifications/Global_NonFerrous.pdf

Platts IW Rotterdam aluminum premium assessments are published in Platts Metals Daily, on pages 421 of Platts Metals Alert and Platts Non Ferrous Metals Alert, in the Platts Market Center, Platts Connect, and in the Platts price database under the codes listed above.

Please submit any feedback, comments or questions to EMEAMetalsTeam@spglobal.com and pricegroup@spglobal.com.

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