SUBSCRIBER NOTE: Platts invites feedback on MOC guidelines for US aluminum assessments

S&P Global Platts is beginning a period of market consultation on updated guidelines for its Market on Close assessment process for US aluminum assessments, including its benchmark US Aluminum Transaction Premium assessment. In addition, Platts is inviting feedback on normalization of transactions, bids and offers that are differentials to the Platts US Transaction price to evaluate equivalent outright values.

MOC GUIDELINES: Market participants are reminded that MOC methodology is a key component of Platts' price assessments across commodities globally. For more information, please see: https://www.platts.com/market-on-close. Market participants always have the option of testing market values through transparent bids and offers open to the market at large. MOC requires specific, transparent and actionable data. The MOC guidelines are aimed at bringing greater clarity, order and transparency to the price discovery processes in the US aluminum markets. Platts regularly invites feedback on these guidelines to ensure the MOC process evolves with the market. Platts editors engage directly with producers, consumers, traders, brokers, end-users, shippers and others to gather price information, and the MOC validates data received through that information-gathering process. During the feedback period, Platts will continue to publish bids, offers and interest to trade from approved participants in the US aluminum MOC process in line with the following editorial standards and guidelines.

Platts is inviting feedback on:

TIMING AND INCREMENTS: Platts is inviting feedback on minimum and maximum price movements during a specific time interval. For example, Platts would only publish bids or offers that changed by a maximum of 0.01 cent/lb per 60 seconds with a minimum price change of 0.005 cents per 60 seconds.

Platts is further proposing that it would only publish bids and offers submitted with complete information to Platts editors by phone, instant-messaging or email before 15:45 EST/EDT.

Platts would not publish any price changes during the final five minutes of the MOC. The MOC concludes at 16:30 EST/EDT.

Buyers and sellers may withdraw their bids or offers at any time during the MOC by communicating the same to Platts editors. Counterparties must clearly communicate their interest to trade a published bid or offer to Platts editors.

VOLUME: Platts is inviting feedback on standard trading volumes and proposes multiples of full 45,000-Ib truckloads, with the premium assessment normalized to quantities of 100 mt to 1,000 mt.

LOCATION: Platts is inviting feedback on which destinations should be included in the “average,” “close” or “extra” freight locations and the standard spreads between these.

DELIVERY WINDOW: Platts is seeking feedback on appropriate delivery windows within the 30-day period currently reflected, and when sellers should narrow the window to specific dates, for example at least seven clear calendar days ahead of the originally traded delivery range.

QUALITY: The metal quality in the MOC process would be physical 99.7% high-grade aluminum P1020A, LME spec, 99.7% Al, min, max 0.2% Si, 0.1% Fe, 0.03% zinc, 0.04% gallium, 0.03% vanadium.

Platts would consider for publication bids, offers and trades for ingots, low-profile sows or T-bars, but would normalize these back to a standard reflecting low-profile sows or T-bars. Platts is seeking feedback on the fungibility of ingots among US plants consuming P1020, the current level of discount, and whether Platts should assess a discount spread for ingots. Platts also considers data for P0610 and normalizes price data for P0610 to P1020 value. Platts is seeking feedback on the normalization factor, for example 0.5 cents upcharge for P0610.

NORMALIZATION OF SPREAD DATA: A large proportion of data received includes premiums or discounts against the benchmark or an average of the benchmark, or differentials due to location, chemistry, terms, etc. Platts is seeking feedback on specific normalization factors.

Please send all feedback, comments and questions to aluminum@spglobal.com and pricegroup@spglobal.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.