Platts clarifies mode of transport specifications for US Midwest aluminum transaction premium (MWP)

Platts, part of S&P Global Commodity Insights, would like to clarify mode of transport specifications for its US Midwest aluminum transaction premium (MWP; MMAKE00).

The daily assessment reflects delivery duty paid (DDP) to a typical-freight consumer in a broad US Midwest region via truck or rail within seven to 30 days. Market information deviating from Platts standard specifications may be considered for the assessment after normalization. If a single mode of transportation is specified, Platts may normalize to account for delivery by both truck and rail.

Bids, offers and expressions of interest to trade reported for publication in Platts Market on Close assessment process are assumed to reflect delivery by truck or rail at buyer's option, unless otherwise specified.

Platts has at times observed post-trade logistical challenges of rail-only shipments meeting the seven- to 30-day delivery window specified in Platts methodology. Platts wishes to remind all participants in its MOC assessment process that trade performance is expected within specified parameters. Participants who are intending to sell should not offer when there is a known and distinct possibility that delivery may be delayed. If congestion or delays prevent performance under the terms of the reported trade, the seller should make reasonable and timely efforts to supply from an alternative source, or the seller should engage in other measures to alleviate the buyer's exposure. Equally, a buyer should not over-commit and then aggregate nominations in a way that makes it logistically impossible for the seller to perform.

Trade performance may be monitored and Platts will take appropriate steps to ensure the integrity of its assessments if issues of non-performance should arise.

For complete assessment specifications, please refer to the Global Nonferrous Metals Specifications Guide.

For information on the MOC assessment process for P1020A aluminum please refer to the Metals Timing and Increment Guidelines.

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.

Please send all comments or questions to Platts_Aluminum@spglobal.com and pricegroup@spglobal.com.

For written comments, please provide a clear indication if they 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.