Aluminum Midwest Premium Explained

Midwest Premium

Commodity prices are determined between buyers and sellers

Platts, part of S&P Global Energy, provides an independent assessment of where commodity prices fall each day and has no financial stake in the price going up or down.

The pricing data Platts sees is published to the market

Platts methodology is publicly available

Platts Commodity Price Reporting

Commodity prices are determined between buyers and sellers

Buyers and Sellers can choose to use Platts price assesments:

As a reference point to negotiate

As a reference price in a contract

To protect against adverse price changes through derivatives

Or not at all

The Midwest Premium: Myths vs Facts

Midwest Transaction Premium (MWP) Price History

The annotated price history timeline of US Aluminum P1020 Midwest Transaction Premium (MWP) shows the impact of market events and tariffs.

Past coverage

S&P Global Energy

S&P Global Energy’s goal is to bring transparency to markets.

Dave Ernsberger

President

Aluminum Midwest Premium Explained

Midwest Premium

Commodity prices are determined between buyers and sellers

Platts, part of S&P Global Energy, provides an independent assessment of where commodity prices fall each day and has no financial stake in the price going up or down.

The pricing data Platts sees is published to the market

Platts methodology is publicly available

Platts Commodity Price Reporting

Commodity prices are determined between buyers and sellers

Buyers and Sellers can choose to use Platts price assesments:

As a reference point to negotiate

As a reference price in a contract

To protect against adverse price changes through derivatives

Or not at all

The Midwest Premium: Myths vs Facts

Fact: The “Midwest Premium” is not a "fee" for “storage and transportation”—it is simply a term for the regional price of aluminum in the Midwest United States.

Fact: Platts does not “set” the Midwest Premium or the price of aluminum - it simply provides (like its competitors) an independent assessment of where the price of aluminum fell between buyers and sellers in the market each day (the use of which is voluntary).

Fact: Platts sheds light on commodity markets by:

Publishing an independent assessment of where spot market prices stand between buyers and sellers each day, using a transparent methodology that is published on our website

Objectively reporting data Platts collects and publishing that data for market participants to see and test value in real time

Explaining the data collected during each trading period and how it factored into that day’s assessment

Providing additional clarity by publishing named, fully transparent data via the Market on Close assessment process

Fact: Platts price assessment methodologies are time tested, designed to exclude anomalous data and highlight repeatable spot value on any given day.

Midwest Transaction Premium (MWP) Price History

Past coverage

Dave Ernsberger

Midwest Premium

Commodity prices are determined between buyers and sellers

Platts, part of S&P Global Energy, provides an independent assessment of where commodity prices fall each day and has no financial stake in the price going up or down.

The pricing data Platts sees is published to the market

Platts methodology is publicly available

Platts Commodity Price Reporting

Commodity prices are determined between buyers and sellers

Buyers and Sellers can choose to use Platts price assesments:

As a reference point to negotiate

As a reference price in a contract

To protect against adverse price changes through derivatives

Or not at all

The Midwest Premium: Myths vs Facts

Fact: The “Midwest Premium” is not a "fee" for “storage and transportation”—it is simply a term for the regional price of aluminum in the Midwest United States.

Fact: Platts does not “set” the Midwest Premium or the price of aluminum - it simply provides (like its competitors) an independent assessment of where the price of aluminum fell between buyers and sellers in the market each day (the use of which is voluntary).

Fact: Platts sheds light on commodity markets by:

Publishing an independent assessment of where spot market prices stand between buyers and sellers each day, using a transparent methodology that is published on our website

Objectively reporting data Platts collects and publishing that data for market participants to see and test value in real time

Explaining the data collected during each trading period and how it factored into that day’s assessment

Providing additional clarity by publishing named, fully transparent data via the Market on Close assessment process

Myth: The Midwest Premium is "artificially inflated." Fact: Platts price assessment methodologies are time tested, designed to exclude anomalous data and highlight repeatable spot value on any given day.

Fact: Platts price assessment methodologies are time tested, designed to exclude anomalous data and highlight repeatable spot value on any given day.

Midwest Transaction Premium (MWP) Price History

Past coverage

Dave Ernsberger