Platts Aluminum Midwest Premium Explained
- The S&P Global Platts Aluminum US Midwest Transaction Premium is assessed using a consistently applied and transparent methodology, reflecting prices obtained by our price assessors surveying buyers, sellers, traders, brokers and other participants in the US aluminum market.
- Driving increases in the Midwest Premium in the first half of 2018 were US import tariffs and US sanctions affecting Rusal, the world's second largest aluminum producer and a big exporter into the US. The impact of these actions significantly reduced available and unrestricted supply in the US - the Midwest Premium simply reflected this unique market dynamic.
- During 2019, the Platts Midwest Premium (MWP), while still affected by the US import tariffs, has fallen about 22% from the 2018 highs, particularly since the mid-2Qtr US tariff exemption for Canada and Mexico. The impact of remaining tariffs (which affect about 40% of US aluminum imports), market uncertainty about whether non-tariffed Canadian aluminum is previously committed or available for import, and ongoing market concerns about replacement and replacement costs continue to significantly reduce available and unrestricted supply in the US; the Midwest Premium is reflecting this.
- S&P Global Platts is an independent price reporting agency, with no vested interest in whether the price of a commodity it covers goes up or down. We publish every data point that underlies our assessments for all in the market to see and comment on – ensuring the integrity and relevance of our valuations.
- Participation in S&P Global Platts price assessment processes is voluntary. It is market participants who decide which aluminum price assessments, from those published by various price reporting organizations, to adopt as industry benchmarks. S&P Global Platts adheres to the internationally recognised IOSCO Principles for Price Reporting Agencies and retains a leading auditor to conduct an annual assurance review of our price assessment processes.
- Details of the S&P Global Platts price assessment process in aluminum are published and publicly available here.
*Video published summer 2018.
- Reuters - COLUMN-Tariff relief but no price relief for U.S. aluminum - 14 June 2019
- Barrel Blog – Aluminum swings in the spotlight — largely a tale of scarcity concerns and tariffs – 21 August 2018
- Reuters – Beer versus aluminum; the U.S. battle lines are drawn again – 9 July 2018
- Barrel Blog - Location is everything, especially with commodity pricing – 3 July 2018
- The Hill - High aluminum price will affect more than the cost of your 6-pack – 31 May 2018
- WSJ – Letter to editor – 24 May 2018