SUBSCRIBER NOTE: Platts proposes assessments for Brazil P1020 aluminum

Platts proposes to begin assessing primary aluminum P1020 prices in the Brazilian market and is seeking feedback on the best methodology and specifications to capture the tradable spot market value for both imports and domestically traded aluminum. Based on industry research to date, Platts is proposing to assess both the import value of P1020 on a CIF major Brazilian port basis, as well as the delivered price in the Southeast region around Sao Paulo. Platts is seeking feedback on the mechanism for the price assessments, whether as the outright (i.e., all-in) aluminum price per metric ton, or a premium/discount to the London Metal Exchange official cash price. The CIF Brazil import price assessment would reflect the spot, physically traded value of high-grade aluminum P1020A, 99.7% Al purity, standard ingot, sow and T-bars, on a weekly dollars per metric ton basis. The assessment would be basis CIF major Brazilian ports, duty unpaid, VAT not included (ICMS and Pis/Cofins), delivery within 30-60 days, typical volume 500-2,000 mt, payment terms net-30 days. Price data for different volumes or payment terms may be normalized to the typical range. Assessed once per week, typically on Friday, through a survey of producers, traders and consumers of P1020 active in the spot market. Platts would monitor the market throughout the week and consider in its assessments all of the information provided regarding deals, bids and offers in the market, but the value reflected in the assessment would be the tradable value as of Friday. The proposed specifications for the domestic assessment would be: Aluminum P1020 Premium delivered Southeast Brazil, meeting P020A specification, 99.7% Al purity, standard ingot, sow and T-Bars. Platts would assess the P1020 market once a week in US dollars per mt. The assessment would reflect delivery within 30 days to customers' plants in the Southeast region of Brazil, duty paid, VAT not included (ICMS and Pis/Cofins). Payment terms net-7 to net-10 days, full-truckload, quantities of 25 mt up to 500 mt. Assessed once per week, typically on Friday, through a survey of producers, traders and consumers of P1020 active in the spot market. Platts would monitor the market throughout the week and consider in its assessments all of the information provided regarding deals, bids and offers in the market, but the value reflected in the assessment would be the tradable value as of Friday. Please address feedback by March 26 to Adriana Carvalho, adriana.carvalho@platts.com, or karen.mcbeth@platts.com with a cc to pricegroup@platts.com.