SUBSCRIBER NOTE: Platts proposes new Mexican aluminum assessments

Platts is soliciting feedback on a proposal to add four new weekly price assessments for Mexican aluminum scrap following industry requests. Platts is accepting feedback on the proposals through January 5, 2016, and expects to launch the assessments on February 4, 2016.

Industry feedback so far indicates that the specifications would be as follows:

Old cast delivered NE Mexico: Weekly assessment of the price for old cast aluminum scrap, to be assessed in pesos/kg (and also published the same day in US dollars or cents/pound equivalent), on Thursdays or closest business day in the event of holidays. The assessment will be for old cast aluminum scrap with up to 5% contamination, minimal 88% recovery. Prices will be normalized to spot business shipping within 30 days, delivered in the Northeastern region (Nuevo Leon and Coahuila states), free of VAT (IVA) tax, net-30 day payment terms for typical volumes of 20 mt. Based on a survey of scrap dealers, secondary smelters and others active in spot old cast trading.

Old sheet, delivered NE Mexico: Weekly price assessment for non-cast aluminum items for consumption by secondary aluminum smelters to meet ISRI "taint/tabor" grade. Assessed once per week on Thursdays, or closest business day, through a survey of scrap dealers, aluminum mills, secondary smelters and others active in old sheet spot trading. Assessed in pesos/kg (and also published the same day in US dollar or cents/pound equivalent), normalized to spot business shipping within 30 days, delivered in the Northeastern region (Nuevo Leon and Coahuila states) free of VAT (IVA) tax, net-30 day payment terms for typical volumes of 20 mt.

UBCs delivered NE Mexico: Weekly price assessment for baled used beverage cans, to meet ISRI "taldon" specification. Assessed once per week on Thursdays, or the closest business day, through a survey of scrap dealers, aluminum mills, secondary smelters and others active in UBC trading. Assessed in pesos/kg (and also published the same day in US dollar or cents/pound equivalent), normalized to spot business shipping within 30 days, delivered in the Northeastern region (Nuevo Leon and Coahuila states) free of VAT (IVA) tax, net-30 day payment terms for typical volumes of 20 mt.

6063 new bare delivered NE Mexico: Weekly price assessment for 6063 extrusion scrap to be assessed in pesos/kg (and also published the same day in US dollar or cents/pound equivalent) on Thursdays or closest business day in the event of holidays. The assessment will be for 6063 new bare extrusion scrap, free of paint, anodized -- may include press scrap with butts. Prices will be normalized to spot business shipping within 30 days, delivered in the Northeastern region (Nuevo Leon or Coahuila states) free of VAT (IVA) tax, net-30 day payment terms for typical volumes of 20 mt. Based on a survey of scrap dealers, secondary smelters, extruders, cable makers and others active in spot 6063 extrusion scrap trading.

Platts is also soliciting feedback on whether to add new assessments for A380 delivered Mexico and P1020 FCA Mexico, based on industry requests. If finalized, these assessments would be launched in early 2016. Preliminary research has indicated that the new proposed assessments would be for A380 delivered Central Mexico, assessed weekly, and the P1020A premium to the London Metal Exchange, FCA Veracruz or Laredo, also assessed weekly.

Please address feedback or questions to Henrique Ribeiro, +55 11 3818 4120 or henrique.ribeiro@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.