Platts launches daily European low-carbon aluminum billet assessments, moves standard billet to daily frequency

Platts, a part of S&P Global Commodity Insights, has launched new daily low-carbon aluminum billet price assessments for the European market, effective Sept. 20. In tandem with the launch, Platts has increased the frequency of its existing weekly assessments for both standard aluminum billet DDP Italy (ABITA04) and DDP Germany (ABGEA04) to daily, also effective Sept. 20.

The low-carbon billet assessments comprise daily assessments for low-carbon aluminum billet delivered duty paid to Italy and Germany and associated monthly averages. Platts has also introduced weekly averages for standard billet following the change in assessment frequency. LCAB specifications are:

Low-Carbon Aluminum Billet DDP Germany

Low-Carbon Aluminum Billet DDP Italy

Symbol

LCABG00

LCABI00

Quality

6060/6063 billet

6060/6063 billet

Quantity

Minimum 50 mt

Minimum 50 mt

Incoterm

DDP

DDP

Location

Germany

Italy

Timing

Within 60 Days

Within 60 Days

Payment

Net 30 days

Net 60 days

UOM

$/mt

$/mt

The LCAB assessments apply to billet produced with a maximum emissions level of 4 mt of CO2/mt of aluminum at the smelter only (Scopes 1 and 2). This low-carbon assessment does not encompass emissions of other production-related activities such as mining and raw material transportation (Scope 3). Other quantities and emission levels will be normalized to this maximum carbon emissions level basis.

Platts will only consider aluminum billets that have had their smelter Scope 1 and 2 emissions certified by an internationally accepted, independent organization. Market participants will be expected to supply proof of such certification upon request. In the absence of observable spot market activity, Platts may consider other verifiable data reported.

Platts may observe direct market activity as well as the effect of movements through spread differentials, for example.

Platts launched these new LCAB assessments following extensive engagement with market participants throughout the aluminum value chain.

The assessments complement Platts' existing carbon-related price offerings, including its LCAP for high-grade European P1020 aluminum and its zero-carbon aluminum price leveraging Platts CORSIA-eligible carbon credit price assessments to calculate the cost of offsetting the carbon emissions of the LCAP assessment to zero.

Platts carbon-related metals assessments align with S&P Global's strategic focus on offering ESG-related commodities pricing and are in response to requests from market participants for tools to help quantify cost and manage risks and opportunities associated with a growing focus on carbon-reduction strategies and increasing global regulation.

The assessments are published in Platts Metals Daily, on Platts Dimensions Pro, and in the Platts price database under the symbols listed above.

Platts invites feedback on this launch. Please send feedback to Platts_Aluminum@spglobal.com and pricegroup@spglobal.com. For written comments, please provide a clear indication if comments are not intended for publication by Platts for public viewing. Platts will consider all comments received and will make comments not marked as confidential available upon request.