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

Platts, part of S&P Global Commodity Insights, is proposing to exclude Russian-origin material from its CIF Japan Quarterly Aluminum premium assessment (AAFGA00), effective Jan. 2, 2024.

Initial market feedback is that an increasing number of market participants are restricting, or pre-emptively seeking to exclude Russian-origin aluminum, in their CIF Japan trading activity.

The settled volumes for Russian-origin aluminum in the first half of 2023 for CIF Japan quarterly contracts have dropped significantly from the same period 2022, down 41.3% on the year to 13,500 mt, according to volume data observed by Platts.

Following a separate consultation process relating to the CIF Japan spot market, Platts has decided to exclude Russian-origin metal from the CIF Japan spot aluminum premium assessment, effective July 3. Further details are available in an earlier subscriber note published June 28 and available here: https://www.spglobal.com/commodityinsights/en/our-methodology/subscriber-notes/062823-platts-to-exclude-russian-origin-aluminum-from-cif-japan-spot-premium-assessment. Platts has noted feedback received in response to its spot proposal that any change to the quarterly premium would require a longer implementation time.

The following assessments would be affected by the proposed change to the quarterly premium:

Platts is seeking feedback on its proposal to platts_mjp_moc@spglobal.com and pricegroup@spglobal.com by July 21.

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.