SUBSCRIBER NOTE: S&P Global Platts to normalize CIF Japan P1020 indications

S&P Global Platts will normalize all bids, offers and trades reported as part of its assessment process for the primary aluminum CIF Japan Spot Premium (MMANA00) to a base month from June 1, 2018.

This follows a period of market feedback that began on February 26, 2018. Trade activity in this market is predominantly on a floating price basis to the average cash settlement prices of the underlying futures in the month of shipment. However, other floating price formulas have been observed. Furthermore, with a wide range of supply sources and a wide loading window being assessed, indications reported to Platts can be against different quotation periods.

Platts has observed that when different quotation periods were used the structure (backwardation or contango) of the underlying futures market could materially affect the trade price agreed.

Base month: In order to ensure the underlying structure is accounted for when assessing the CIF Japan Spot Premium and to compare all P1020 indications against the same base, Platts will start normalizing indications to a base month.

The base month will be calendar month plus one, rolling on the first business day of the month.

For example, from February 1 to 28, 2018 Platts will normalize all indications to "March average-related"; from March 1, Platts will normalize all indications to "April average-related".

Please send any comments and feedback to pricegroup@spglobal.com.