SUBSCRIBER NOTE: Platts to launch 6022, revise 6063 aluminum scrap assessments

Following a period of industry feedback, Platts has decided to launch a new weekly price assessment for 6022 new bare aluminum scrap and better define its existing 6063 scrap assessment, effective January 7, 2016.

Platts has decided to delay a decision on whether to launch a price assessment for 10/10 extrusion scrap pending further feedback.

Platts will add a new 6022 sheet scrap price assessment to meet the following specifications: 6022 new bare scrap: Weekly assessment of the price for new, bare aluminum sheet scrap meeting 6022 specification, to be assessed weekly as a discount to Platts Aluminum Transaction price on the day of assessment, and also published as a calculated outright value, weekly on Thursdays or closest business day in the event of holidays. The assessment will be for 6022 sheet scrap with a minimum thickness of 0.050 inch.

Material to be free of hair wire, wire screen, dirt and other non-metallic items, free of punchings less than half-inch in diameter. Grease and oil not to total more than 1%. Assessed in cents per pound, taking into account spreads and outright values, normalized to spot business shipping within 30 days, delivered Midwest basis, net-30 day payment terms. Based on a survey of scrap dealers, aluminum mills, remelt billet makers, extruders, stampers, automotive companies and others active in spot 6022 trading.

Platts will also rename and amend the specification for its 6063 press scrap assessment, which started in 2000. In recent years, the spot data being captured through the weekly survey has tended to be for new bare 6063 extrusion scrap, as most 6063 press scrap with butts is kept in-house or tolled, or sold under annual agreements.

The new name and specification would be 6063 new bare extrusion scrap: Weekly price assessment for aluminum scrap consisting of one alloy (typically 6063). Material may contain "butt ends" from the extrusion process but must be free of any foreign contamination. Anodized material is acceptable, but free of oil, film, coating or paint, and free of stainless, iron or other metallics. Price data for straight 6063 press scrap or 6063 scrap containing another alloy, paint or oil may be normalized to the stated specification. Price assessment normalized to basis delivered US Midwest, within 30 days, net-30 day payment terms, assessed in cents/lb as a discount to that day's Platts Transaction price assessment and also published as a calculated outright value. Assessed once per week on Thursdays or closest business day through a survey of scrap dealers, aluminum producers, aluminum mills, remelt billet makers, extruders, secondary smelters and others active in 6063 spot trading, taking into account reported bids, offers and deals reported as spreads or outright values.

Please address any further feedback or questions to Tina Allagh, 202-383-2257 or tina.allagh@platts.com; Sarah Baltic, 412-431-0416 or sarah.baltic@platts.com; or Karen McBeth, 202-383-2110 or karen.mcbeth@platts.com, with a cc to pricegroup@platts.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.