Platts will not proceed with proposed launch of daily FOB Indonesia aluminum premium assessment

Platts, part of S&P Global Energy, will not proceed with its proposal to launch a new daily FOB Indonesia aluminum premium assessment, following industry feedback.

Platts previously proposed the new assessment in a Sept. 14 subscriber note here.

However, industry feedback showed that most Indonesian cargoes trade on a CIF basis and that varying port logistics and freight rates may make an FOB netback unrepresentative. Platts has therefore decided not to launch the assessment.

Indonesia-origin cargoes continue to fall within the specifications of the Platts daily CIF Main Asian Ports (MAP) spot aluminum premium (AAFGG00) assessment. The MAP premium reflects the spot market value of P1020 aluminum cargoes of any origin and is assessed with Incheon, South Korea, as the basis port. It considers shipments to main ports in Asia, excluding Japan, for freight normalization purposes.

Full details on Platts aluminum assessments can be found in the Global Nonferrous Metals Specification Guide

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