SUBSCRIBER NOTE: Platts to launch weekly South Korea aluminum premium assessment

Following a period of industry feedback, Platts will launch a weekly spot CIF South Korea aluminum premium assessment beginning July 1, 2015.

Market participants have provided feedback to date that this price is representative of the current spot market in Asia, which sees active spot trade in South Korea.

The spot assessment would reflect the premium or discount to the LME cash price for P1020A ingots basis CIF Busan, duty-unpaid, for P1020 of any origin, with a typical trade volume of 200 mt to 2,000 mt. The specifications of the metal will be P1020A ingots to meet minimum LME specification, 99.7% Al min, max 0.1% Si, 0.2% Fe, 0.03% zinc, 0.04% gallium, 0.03% vanadium. The assessment will be normalized to reflect metal with a maximum iron content of 0.14%, based on the typical trading patterns in Korea.

The assessment would be basis CIF Busan, duty-unpaid, VAT not included, loading in the next 30 days from date of transaction, payment terms LC at sight and cash against documents. Trades CIF Incheon will be normalized to CIF Busan, and other domestic and regional transactions may be considered for trend purposes.

The premium will be assessed once a week, on Wednesdays or the closest business day in the event of public holidays, through a survey of producers, traders and consumers of P1020A active in the spot market. Platts would monitor the market throughout the week and consider in its assessments all of the information provided regarding deals, bids and offers in the market, but the value reflected in the assessment would be the tradable value at the close of market Singapore time, expressed in a narrow range reflecting the majority of bids, offers and transactions.

Please send all questions and feedback to joanna.lim@platts.com, yuencheng.mok@platts.com and pricegroup@platts.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.