Platts expands European low-carbon, zero-carbon aluminum assessments

Platts, part of S&P Global Commodity Insights, has expanded its daily European low-carbon (LCAP) and zero-carbon (ZCAP) assessments for primary aluminum, effective July 1.

The new assessments complement Platts existing carbon-accounted aluminum prices first launched in April 2021, which capture the total premium for low-carbon or zero-carbon P1020, incorporating the underlying premium for carbon-unaccounted P1020, over the prevailing London Metal Exchange cash settlement.

Platts has also renamed its existing carbon-accounted aluminum assessments for greater clarity to help market participants differentiate the new low-carbon and zero-carbon "premium" over P1020 from the existing low-carbon and zero-carbon "price," which incorporates the P1020 premium.

Platts initially proposed the new assessments on May 17, in a subscriber note available here.

Following market consultation, Platts confirmed the new assessment launches in a subscriber note on June 3 available here.

The enlarged suite of daily assessments is as follows:

In addition, Platts has calculated historic data for the new daily assessments based on respective LCAP/ZCAP and P1020 assessment history.

Price history will be backfilled to April 6, 2021 , effective July 2024.

Platts low-carbon aluminum assessments reflect the differential achieved for primary aluminum with total certified emissions of 4-mt equivalent (mte) or less of CO2 per mt of aluminum. The assessments cover direct and indirect emissions associated with aluminum smelting, typically considered by market participants as Scope 1 and 2 emissions.

Platts zero-carbon aluminum assessments calculate the cost of offsetting the carbon emissions of the low-carbon aluminum in-warehouse Rotterdam assessments to zero, based on the value of the daily Platts CORSIA-eligible carbon credit price assessment (CEC), measured in dollars per mt CO2-equivalent ($/mtCO2e).

Full aluminum specifications can be found in the Global Nonferrous Metals specifications guide here.

Platts IW Rotterdam aluminum assessments are published in Platts Metals Daily, on pages PMA421 and MTL421, with the associated monthly averages published on PMA0650 and MTL0650 of Platts Metals Alert and Platts Nonferrous Metals Alert, in the Platts Market Center, Platts Connect and in the Platts price database.

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