Platts launches daily CIF Main Asian Ports P1020 aluminum assessment

Platts, part of S&P Global Commodity Insights, has launched a daily spot P1020 aluminum premium assessment delivered CIF Main Asian Ports, effective May 2, 2023.

The new CIF MAP premium is assessed with South Korea's Incheon as the basis port. Shipments of P1020 aluminum to all other major Asian ports, excluding Japan, will be considered and may be normalized to Incheon port.

The introduction of an aluminum premium assessment delivered to other Asian ports outside Japan comes after consistent market feedback and observation that there has been a widening gap between Japan import premiums compared with most other markets in Asia. In recent years, the volume of spot trades to Japan has declined, while spot liquidity in the rest of Asia has increased.

Publication of Platts existing CIF Japan spot and quarterly premium assessments remains unchanged.

The new CIF MAP assessment is published daily as a premium or discount to the prevailing futures cash settlement price for high-grade aluminum. Market close is 4:30 pm Singapore time and assessment publication follows the Singapore publishing schedule.

The assessment considers market information reported to Platts and published throughout the day, including firm bids and offers, transactions and indications, as well as any other data deemed relevant to the assessment process.

The symbols for the new MAP premium assessments are as follows:

Specifications for the Platts CIF MAP Aluminum Premium assessments are:

Calculation and normalization details are:

Origin

The assessment reflects the spot market value of P1020 aluminum of all open origins.

According to observed customs import data, the majority of P1020 aluminum imported into South Korea is of duty-free origin. In the event where non duty-free market data is observed, Platts may normalize and test such information in the market for assessment consideration.

Freight

Platts considers main ports in northeast Asia for calculation and freight normalization purposes.

For example, Australia-origin P1020 aluminum traded at $100/mt on Jan. 24 for February loading, February pricing on CIF Vietnam basis.

Freight between Australia-to-northeast Asia is $10/mt higher compared with Australia-to-Vietnam.

Platts would normalize the trade to $110/mt by considering this freight differential.

Platts originally published the proposal March 8, and the relevant note can be found at:

https://www.spglobal.com/commodityinsights/en/our-methodology/subscriber-notes/030823-platts-proposes-to-launch-daily-cif-main-asian-ports-p1020-aluminum-assessment-spread-to-cif-japan-forward-quarter-premiu

Platts communicated its decision to introduce the proposed assessment in a subscriber note published April 3:

https://www.spglobal.com/commodityinsights/en/our-methodology/subscriber-notes/040323-platts-to-launch-daily-cif-main-asian-ports-p1020-aluminum-assessment

Market participants are invited to send all comments, feedback, and questions to platts_mjp_moc@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.