SUBSCRIBER NOTE: Platts to update US Aluminum Transaction premium methodology

Following a period of industry feedback, Platts will update its normalization matrix for its US Aluminum Transaction premium assessment (symbol MMAKE00) to reflect changes in the supply structure in North America and larger spot order sizes.

The changes are to become effective on April 1, 2015.

Platts will increase the typical order quantity to 100-1,000 mt from the current 100-500 mt.

Price data and information outside of this 100-1,000 mt range may be normalized to this standard.

Platts will also adjust its normalization matrix as previously proposed to reflect market supply dynamics from Detroit and Baltimore warehouse stocks and Canadian imports.

Deals that are reported as FOB, FCA, for non-Midwest locations or for particularly close or long freights (i.e., less than/greater than the current range of 2.0-2.5 cents/lb) are normalized before inclusion in the Platts Aluminum Transaction premium calculations.

Platts uses a matrix of typical delivery locations throughout North America and categorizes these locations as "average," "close" or "extra" freights based on prevailing market practice.

The current average (or basis) locations are: Lafayette, Indiana; Anderson, Indiana; Warrick, Indiana; Berea, Kentucky; Lewisport, Kentucky; Shelbyville, Kentucky; Russellville, Kentucky; St. Louis, Missouri; Carthage, Tennessee; New Johnsonville, Tennessee; and Manitowoc, Wisconsin.

Certain "close" or "extra" freight locations are normalized to "average" based on assigned differential values ranging from plus/minus 0.25 cent/lb to 0.5 cent/lb, which are adjusted periodically based on market feedback on typical locational discounts or extras.

Any further questions or feedback may be directed 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.