Platts proposes changes to US Midwest implied duty-unpaid aluminum premium calculation

Platts, part of S&P Global Commodity Insights, proposes to change its US Midwest implied duty-unpaid premium for P1020A Midwest aluminum to a freight net-forward calculation from Platts CIF New Orleans duty-unpaid assessment, effective Aug. 1, 2025.

The P1020A MW US Transaction Premium (Implied Duty-Unpaid) delivered US Midwest calculation (MMOFU00) and related assessments currently reflect material with an FOB Canada origin and prevailing Canadian aluminum tariffs. Under this proposal, the calculation would change to reflect a US port of entry, moving to a New Orleans basis to capture imports arriving in the US from multiple origins.

The proposed calculation, in cents/lb, would be as follows:

• Aluminum CIF New Orleans duty-unpaid premium cents/lb (MMNDU00) + New Orleans to US Midwest Aluminum freight cents/lb (MMQDU00)

The proposal to revise the calculation used to derive an implied duty-unpaid value for US aluminum imports is in response to initial market feedback that new tariff rates and subsequent changes to existing trade flows have prompted market participants to consider additional import locations, such as New Orleans, for duty-unpaid material. New Orleans is a major import point for US metals and the port receives aluminum shipments from around the world. Year over year in the first quarter of 2025, imports into New Orleans were up 50%, according to US Census data. In the first four months of 2025, the Port of New Orleans received 109,296 mt of aluminum—13.87% of total imports, making it the third largest port of entry.

Platts has announced the launch of the New Orleans to US Midwest Aluminum freight assessment from July 1. More details can be found here: https://www.spglobal.com/commodity-insights/en/pricing-benchmarks/our-methodology/subscriber-notes/070125-platts-launches-new-orleans-to-us-midwest-aluminum-freight-assessment

The following assessments would be impacted by the proposed change:

While the calculation structure would change under this proposal, the symbols and price history associated with the implied duty-unpaid series would remain unchanged.

Also, the Aluminum US P1020Duty Freight Factor cents/lb (AFLSB00) and Aluminum P1020 US Import Duty cents/lb (MMOEU00) used in the original implied duty-unpaid calculation, along with related conversions and averages, would continue to be published.

The import duty calculation and related duty-unpaid indicators were launched in 2018 to complement Platts benchmark Midwest US Transaction Premium and the US Midwest Transaction Price(all-in) assessments for P1020 aluminum, which are assessed on a delivered, duty-paid basis.

Platts DDP assessments reflect the delivered Midwest price of P1020 from all origins and would not be impacted by the proposed change.

Full details of Platts US aluminum assessments are available in the global nonferrous specifications guide here: https://www.spglobal.com/commodityinsights/en/our-methodology/methodology-specifications/metals/nonferrous-methodology.

Platts P1020A MW US Transaction Premium (Implied Duty-Unpaid) delivered US Midwest calculation and related US Midwest Implied Duty Unpaid Indicators are published in Metals Daily and Metals Week, on PMA413 and MTL413 fixed pages, and in the Platts pricing database.

Platts invites feedback, comments and questions on this proposal to metalsamericas@spglobal.com and pricegroup@spglobal.com by July18.

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.