Platts proposes to exclude Russian-origin aluminum from CIF Japan spot premium assessment

Platts, part of S&P Global Commodity Insights, is proposing to exclude Russian-origin material from its CIF Japan Spot Aluminum premium assessment (MMANA00), effective July 3, 2023.

Platts previously proposed moving the CIF Japan spot aluminum premium assessment specification to open origin in a subscriber note published March 8 and available here: https://www.spglobal.com/commodityinsights/en/our-methodology/subscriber-notes/030823-platts-proposes-to-move-cif-japan-spot-aluminum-premium-assessment-specification-to-open-origin

Market feedback received in response to the proposal reflects that an increasing number of market participants are restricting, or pre-emptively seeking to exclude, Russian-origin aluminum in their CIF Japan spot trading activity.

Under its revised proposal, Platts would exclude Russian-origin material on the basis of an observed change in merchantability for material imported into Japan in the open spot market. The CIF Japan spot assessment would continue to exclude Iran, India and Egypt, in line with the market definition of Good Western material, and material from LME warehouses, considering feedback regarding the continued relevance of these specifications.

The following assessments would be affected:

The proposed exclusion of Russian origin aluminum would not apply to the CIF Japan Forward Quarter Aluminum premium assessment (AAFGA00), which continued to see Russian origin material traded in the current second quarter contract negotiations at a similar level to other origins.

Platts is seeking feedback on its revised proposal to platts_mjp_moc@spglobal.com and pricegroup@spglobal.com by May 22, 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.