Platts proposes to carry over US Aluminum Transaction Premium value on US holidays, eliminate month-end early market close

Platts, part of S&P Global Commodity Insights, proposes carrying over the published value of its US Aluminum Transaction Premium from the day prior to US holidays, effective November 2022. All aluminum assessments and calculated prices related to the US transaction premium would follow the same practice.

Effectively, the transaction premium value published on US holidays would be the same as the assessed value from the prior day, as trading activity is typically limited and the bulk of market participants are absent on US holidays.

In addition to the proposed carrying over of the previous day's value on US holidays, Platts proposes ending the practice of an early market close of 1:00 pm US Eastern time on the last business day of each month, also effective November 2022.

The carryover would take effect on Thanksgiving Day, Nov. 24, 2022, when the Nov. 23 assessment would be carried over to Nov. 24. The Nov. 23 assessment also would be carried over to the Day after Thanksgiving, Nov. 25. The final date for the month-end early close would be Oct. 31, with the Nov. 30 assessment reflecting the standard 4 pm US Eastern Time close. All Market on Close cutoffs and timings would align with the 4 pm ET close as reflected in the Platts Metals MOC Timing and Increment Guidelines: found here.

The carryover proposal follows an extended feedback period regarding a separate proposal to align publication of its US Aluminum Transaction Premium with a US holiday calendar. Platts decided in that instance to maintain its current practice of aligning the premium's publication with a London holiday calendar: decision note

Under the current proposal, Platts would carry over the previous day's US transaction premium assessment on the following US holidays – or days on which those holidays are observed:

Martin Luther King, Jr. Day

Presidents' Day

Memorial Day

Juneteenth

Independence Day

Labor Day

Thanksgiving Day

Day after Thanksgiving Day

The carryover premium would be used in all related US aluminum assessments and all-in calculations, which add premiums or discounts assessed by Platts to underlying settlements from the LME.

The following prices and symbols would be affected:

DESCRIPTION SYMBOL MONTHLY AVERAGE

US Alum Trans Prem Daily MMAKE00 MMAKE03

US Transaction (all-in) MMAAF10 MMAAF02

US Aluminum Net-Cash Prem Daily MMACN00 MMACN03

Midwest US P1020 Market MMAAE00 MMAAE03

US P1020 Import Duty MMOEU00 MMOEU03

MW Trans Prem (implied duty-unpaid) MMOFU00 MMOFU03

MW Trans Price (implied duty-unpaid) MMOGU00 MMOGU03

US P1020 Duty Freight Factor AFLSB00 n/a

CIF New Orleans premium MMNDU00 MMNDU03

CIF NOLA-MW premium diff MMNOL00 MMNOL03

Platts US aluminum assessments are published on: Platts Metals Daily on pages 0412, 0413 and 0300 on Platts Metals Alert and Platts Non Ferrous Metals Alert in the Platts Market Center, and in the Platts price database under the codes listed above.

Platts invites feedback to Platts_Aluminum@spglobal.com and pricegroup@spglobal.com by Aug. 31.

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.