SUBSCRIBER NOTE: Platts to discontinue China Aluminum Premiums; to launch All-In Price

Following a period of industry feedback, Platts will discontinue the publication of the daily Western aluminum premium C+F China (MMALQ00) and the Russian aluminum premium C+F China (MMALR00) effective October 30, 2015.

With the discontinuation of these prices, Platts will also cease to publish the Western aluminum fixed price equivalent C+F China price (MMALR00), as well as the Russian aluminum fixed price equivalent C+F China price (MMACR00), which are automated prices based on current LME aluminum price plus the assessed premiums.

As Platts has reported, spot trade activity for these metals into China have been minimal in recent years due to rapidly expanding domestic smelting capacity and the resulting excess output. China imports only when there is a strong arbitrage opportunity between the domestic and import markets, which happens only a few times a year.

Market participants have provided feedback that these premiums are no longer representative and sources have instead indicated interest in all-in formula prices that show the spread between import prices to China compared with domestic prices.

In response, Platts will launch on November 2, 2015, a daily all-in formula price which will reflect the CFR China level. The proposed import price will reflect -- Current LME + Platts CIF South Korean Spot Premium x Yuan exchange rate x 17% Value Added Tax + China port charges. This can then be compared with the China domestic Shanghai Futures Exchange current front month price, as well as the various domestic spot prices for the reference spread, according to market participants' preferences.

Any further questions and feedback should be directed to yuencheng.mok@platts.com and pricegroup@platts.com.

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