Platts to change China alumina assessment to CIF incoterm, keep payment terms unchanged

Following market feedback, S&P Global Platts has decided to change its China alumina price assessments to CIF basis from CFR to reflect current standard market practice.

The effective date for the change was previously proposed to be Dec. 1, 2020, but has now been scheduled for Jan. 11, 2021.

The change will not affect the Platts Australian alumina daily benchmark assessment of FOB Western Australia.

The change was originally proposed in a subscriber note published on Platts website on Sept.14 and may be viewed here:

https://www.spglobal.com/platts/en/our-methodology/subscriber-notes/091420-platts-proposes-incoterm-payment-term-changes-for-alumina-assessments

Platts will continue reflecting in its assessment price information reported on a CFR China basis, after normalization to CIF terms, based on the insurance costs at the time of publication. Platts estimates the current price of insurance at around 10 cents/mt.

Additionally, Platts had researched the possibility of changing the payment terms for its alumina assessments. However, following the recommendations from market participants, the payment terms will remain as L/C payable within 30 days and payments within 30 days of bill of lading.

Platts assesses China alumina price in $/mt, and also publishes the price in Yuan/mt, based on a daily currency conversion rate.

The affected assessments are published on Platts Nonferrous Metals Alert fixed page MTL0005, MTL0650, MTL0678, in Platts Metals Daily, on the Platts Market Center, and in the Platts price database under the codes listed below.

Current Assessment Title Proposed Title Code Monthly Average Weekly Average Yearly Average

Alumina CFR China Alumina CIF China MMALZ00 MMALZ03 MMALZ04 MMALZ16

Alumina CFR China Yuan/mt Alumina CIF China Yuan/mt MMACA00 MMACA03

Please send comments, questions and other feedback to platts_alumina_moc@spglobal.com and pricegroup@spglobal.com

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.