Platts proposes amending US Midwest aluminum transaction premium basis to truck delivery

Platts, part of S&P Global Commodity Insights, proposes amending its US Midwest aluminum transaction premium basis to delivery by truck, effective Nov. 1, 2023.

The current methodology states Delivered Duty Paid (DDP), "delivery by truck or rail." However, Platts has observed truck as the prevailing market standard for spot delivery, with differing pricing values between truck and rail. Platts has also observed logistical challenges of rail shipments meeting the 7-30 day delivery window specified in Platts methodology.

Rail shipments able to deliver within the stated 7-30 day spot window would still be considered for the assessment but may be normalized to truck delivery based on the spread between the two transportation modes. Platts is seeking market feedback on the spread between truck and rail delivery and will publish relevant spread information as heards.

The following assessments and calculations would be affected:

Platts US aluminum assessments are published in Platts Metals Daily on pages 0412, 0413, and 0300, on Platts Metals Alert and Platts Non Ferrous Metals Alert, in Platts Market Center, in the Platts price database and on Platts Dimensions Pro.

Platts invites feedback on this proposal to Platts_Aluminum@spglobal.com and pricegroup@spglobal.com by close of business Friday, Sept. 8.