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Platts Aluminum Midwest Premium Explained

The Midwest Premium is a term for the price of aluminum supplied to the Midwest United States.

Platts (like its competitors) provides independent assessments of where this price falls each day between buyers and sellers in this regional market.

Myths vs Facts

Myth:

The Midwest Premium is a “fee” that is charged to buyers and end users of aluminum—intended to account for “transport and storage” costs.

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.



Learn the Truth About the Midwest Premium >


Learn About the APEX Act and Why It Isn't Needed >



 

In 2018, the U.S. imposed 10% tariffs on aluminum imports. Beer industry leaders now want to lower aluminum prices through "government intervention," claiming the Midwest Premium is "artificially inflated."

Rep. Ken Buck of Colorado claims the APEX act is needed "to equip the CFTC to investigate pricing irregularities," but it would give the CFTC unrestricted authority to intervene in pricing.

Learn More About the APEX Act >

  • Myth: The MWP is a "fee"?
  • Myth: The MWP is “set” by Platts?
  • Myth: The MWP is “opaque”?
  • Myth: The MWP is “artificially inflated”?
  • Myth: The APEX Act is “needed”?

Myth: The Midwest Premium is a “fee” that is charged to buyers and end users of aluminum—intended to account for “transport and storage” costs.

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.

Learn the Truth About the Midwest Premium

Myth: The Midwest Premium is “set” by “only one entity” (Platts).

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).

Learn the Truth About the Midwest Premium

Myth: The Midwest Premium is an “opaque pricing system” based on a “black box survey.”

Fact: Platts sheds light on commodity markets by:
- publishing an independent assessment of where prices fell between buyers and sellers each day using a methodology that is published on our website
- reporting all pricing information Platts sees and relies on for market participants to see and validate themselves.

Learn the Truth About the Midwest Premium

Myth: The Midwest Premium is “artificially inflated”.

Fact: S&P Global Platts does not “artificially inflate” the Midwest Premium or the price of aluminum, and has no financial stake in the price of aluminum or any commodity going up or down.

Learn the Truth About the Midwest Premium

Myth: The APEX Act is needed “to equip the CFTC” with the authority “to investigate pricing irregularities” and “unfair market practices.”

Fact—the APEX Act is:

Not needed because the CFTC already has the authority to oversee commodities markets, including aluminum, and investigate any "pricing irregularities," including "artificially inflated" prices or manipulation of the market

Built on unsubstantiated claims the CTFC has already refused - testifying to Congress: "we monitor that very carefully... we have not found manipulation"

An effort by one industry to use political influence to lower the price of aluminum through "government intervention" following increased aluminum costs from tariffs

Potentially disruptive to commodities markets through unrestricted government authority over commodity pricing

Learn the Truth About the Midwest Premium

In the News