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

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

Market feedback received 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. Spot trade volumes of Russian cargoes into Japan were also observed by most market participants to be minimal.

Under this change, the CIF Japan spot assessment will continue to exclude metal from Iran, India and Egypt, in line with the market definition of Good Western material, as well as material from LME warehouses.

The following assessments will be affected:

This exclusion of Russian-origin aluminum from the CIF Japan Spot Aluminum premium assessment will not apply to the CIF Japan Forward Quarter Aluminum premium assessment (AAFGA00) currently, which continued to see Russian-origin material traded in the 2023 first- and second-quarter contract negotiations at a similar premium to other origins.

Platts continues to engage with market participants regarding the treatment of Russian-origin material in the Japan quarterly aluminum premium assessment.

Platts first published a proposal to exclude Russian-origin cargoes on April 28 and the subscriber note can be found at: https://www.spglobal.com/commodityinsights/en/our-methodology/subscriber-notes/042823-platts-proposes-to-exclude-russian-origin-aluminum-from-cif-japan-spot-premium-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.