Platts to maintain US Midwest aluminum transaction premium transport basis as truck or rail delivery

Following market consultation, Platts, part of S&P Global Commodity Insights, will maintain its US Midwest aluminum transaction premium mode of transport specification as basis delivery by truck or rail.

Platts previously proposed amending the mode of transport to a truck delivery basis via a subscriber note available here. The feedback period was subsequently extended to invite further comment.

The decision to maintain the existing mode of transport specification reflects feedback that delivery by truck or rail continues to be the prevailing market standard for spot delivery. Under this specification, bids, offers and expressions of interest to trade reported for publication in the Platts Market on Close assessment process are assumed to reflect delivery by truck or rail at buyer's option, unless otherwise specified. If a single mode of transportation is specified, Platts may normalize to account for delivery by both truck and rail.

Platts also wishes to clarify that regardless of mode of transportation, truck and rail shipments must meet the seven- to 30-day delivery window specified in Platts methodology. If at any time a mode of transportation is experiencing delays that could lead to a discount for that mode, then the data may be normalized to the mode of transport certain to ship in the spot window. Platts continually seeks market feedback on logistics and will publish market information on price spreads between transport modes as heards.

The Midwest premium is assessed on a delivered duty paid, or DDP, basis. The mode of transport specification applies to the following assessments and calculations:

For complete assessment specifications, please refer to the Global Nonferrous Metals Specifications Guide: /content/dam/spglobal/ci/en/documents/platts/en/our-methodology/methodology-specifications/Global_NonFerrous.pdf

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 Connect.

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.