Platts proposes to move CIF Japan spot aluminum premium assessment specification to open origin

Platts, part of S&P Global Commodity Insights, is proposing to move its daily CIF Japan spot aluminum premium assessment specification to an open-origin basis, from a Good Western definition with country exclusions, effective May 2, 2023.

Platts has observed that the definition for aluminum categorized under Good Western has become less distinct in recent years and initial market feedback received is that the use of the term has reduced significantly. The proposed change to open origin would better reflect actual trading activity and provide more clarity in material specifications for the CIF Japan aluminum market.

Under this proposal, material from Egypt, India and London Metal Exchange warehouses would no longer be excluded from the assessment process. Material supplied from Iran, which is subject to trading embargoes and sanctions recognized under international law, and is restricted in merchantability, will continue to be excluded from the assessment process.

The assessment would continue to reflect standard P1020 aluminum in line with LME specifications.

The proposed change would be reflected as follows in the Platts specifications --

Revised

The CIF Japan spot aluminum premium (MMANA00), assessed as a range, reflects all origins.

Current

The CIF Japan spot aluminum premium (MMANA00), assessed as a range, reflects all origins, except Iran, India, Egypt in line with the market definition of Good Western material, and excludes material from LME warehouses.

Platts CIF Japan aluminum assessments are published in Platts Metals Daily, on pages PMA/MTL0107, PMA/MTL0108, PMA/MTL0419 and PMA/MTL0650 of Platts Metals Alert and Platts Non Ferrous Metals Alert, in the Platts Market Center, Platts Dimensions Pro and in the Platts price database under the codes listed above.

Platts invites feedback to platts_mjp_moc@spglobal.com and pricegroup@spglobal.com by March 24, 2023.

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.