S&P Global Platts publishes new Midwest Premium methodology
Friday, August 3, 2018
S&P Global Platts, the leading independent provider of information and benchmark prices for the commodities and energy markets, announced it will publish new price assessments for implied duty-unpaid U.S. Midwest aluminum P1020 values, as well as a daily calculated import duty assessment, effective August 1, 2018.
"Our new implied duty-unpaid price assessments provide market participants with greater transparency of aluminum values in a tariff environment," said Ian Dudden, Global Content Director, Metals & Agriculture, S&P Global Platts . "Within the U.S., there are a number of aluminum grades that trade as a differential to the primary aluminum reflected in the Midwest Transaction Premium, such as aluminum scrap and cansheet aluminum. These grades may not be subject to duties and our new implied duty-unpaid price assessments allow for valuation comparisons for other non-tariffed aluminum. They will also help participants outside of the U.S. assess duty free market value."
No changes have been made to the existing U.S. Midwest Transaction Premium benchmark, which has been published since 1984 and reflects regionally-specific market conditions in the U.S., including supply and demand, tariffs and the regional cost of logistics, such as trucking freight and handling charges. The U.S. Midwest Transaction Premium is assessed using bids, offers and trade data collected from active market participants, and reflects the basis upon which physical spot market trade occurs.
Read the full release here.