Platts clarifies performance expectations for trades reported in the US Aluminum MOC

Platts, part of S&P Global Energy, would like to remind participants that performance of trades reported through the Platts US Aluminum Market on Close assessment process is paramount, and participants should abide by typical market practices.

Platts understands that the average-freight locations are consuming locations, with varying expectations (i.e., first-come first-served, by appointment only, particular unloading days, etc.). Any expectations around delivery of metal should be consistent with the typical market practice for that location. Platts expects buyers and sellers to be reasonable in their bilateral discussions, and to mutually agree on delivery dates within the 7-30 day window for performance as soon as possible after the transaction has been reported. Despite typical market practice in a DDP market wherein the seller nominates delivery, Platts understands, based on market feedback, that delivery is subject to consuming locations' schedules and availability, and therefore, sellers must make every effort to accommodate.

Platts would like to remind participants that trade performance is paramount to participation in the MOC. If there is a known impediment to perform on a reported trade, such as a congested terminal, delivery delays or other logistical issues, participants must make a good faith effort to overcome that impediment in order to deliver within the 7-30-day laycan stipulated in the Platts methodology for US aluminum.

Participants who intend to sell should not offer when there is a known and distinct possibility that loading/delivery may be delayed. If congestion or delays prevent performance under the terms of the reported trade, the seller should make reasonable and timely efforts to supply from an alternative source, or the seller should engage in other measures to accommodate the buyer's reasonable request. Equally, a buyer should not over-commit and then aggregate nominations in a way that makes it logistically impossible for the seller to perform.

Platts will take appropriate steps to ensure the integrity of its assessments if issues of non-performance should arise.

For comments and feedback, please contact Platts_Aluminum@spglobal.com and pricegroup@spglobal.com.