SUBSCRIBER NOTE: Platts to replace CIF China aluminum premiums with all-in calculated value

Platts is proposing to discontinue the publication of the daily Western aluminum premium C+F China (MMALQ00) and the Russian aluminum premium C+F China (MMALR00) effective October 30, 2015. With the discontinuation of these prices, Platts will also cease to publish the Western aluminum fixed price equivalent C+F China price (MMALR00), as well as the Russian aluminum fixed price equivalent C+F China price (MMACR00), which are automated prices based on current LME aluminum price plus the assessed premiums. Spot trade activity for these metals into China has been minimal in recent years due to rapidly expanding domestic smelting capacity and the resulting excess output. China imports only when there is a strong arbitrage opportunity between the domestic and import markets, which happens only a few times a year. Preliminary market research shows these premiums are no longer representative and sources have instead indicated interest in all-in formula prices that show the spread between import prices to China compared with domestic prices. In response, Platts is also proposing to launch on November 2, 2015, a daily all-in formula price which will reflect the CFR China level. The proposed import price will reflect -- Current LME + Platts CIF South Korean Spot Premium x Yuan exchange rate x 17% Value Added Tax + China port charges. This will then be compared with the China domestic Shanghai Futures Exchange current front month price, as well as the current Changjiang spot price for the reference spread. Please send all questions and feedback to yuencheng.mok@platts.com and pricegroup@platts.com by May 30, 2015. 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.