The CIF South Korea Aluminum Premium is Platts' first price assessment for South Korean metals products and augments Platts existing suite of metals price references serving regional and global markets.It reflects the transactable value of physically-traded aluminum as a premium or discount to the London Metal Exchange (LME) cash price for P1020A ingots on a cost, insurance & freight (CIF) Busan basis.The spot assessment reflects the premium or discount to the LME cash price for P1020A ingots basis CIF Busan, duty-unpaid, for P1020 of any origin, with a typical trade volume of 200 mt to 2,000 mt. The specifications are P1020A ingots to meet minimum LME specification, 99.7% Al min, max 0.1% Si, 0.2% Fe, 0.03% zinc, 0.04% gallium, 0.03% vanadium. The assessment will be normalized to reflect metal with a maximum iron content of 0.14%.The assessment reflects the cost of physically delivering primary aluminum to Korean users, expressed as a differential to the exchange futures price.Platts developed this assessment following industry feedback that South Korea has become the leading spot market for aluminum in Asia. Primary aluminum P1020 grade is used in making products such as beverage cans, automobile parts and packaging, as well as a feedstock for other aluminum alloys.
The aluminum premium will be assessed weekly, on Wednesdays or the closest business day in the event of public holidays, through a survey of producers, traders and consumers of P1020A active in the spot market.Platts will monitor the aluminum market throughout the week and consider in its assessments all of the information provided regarding deals, bids and offers in the market, but the value reflected in the assessment will be the tradable value at the close of market at 3 pm Singapore time, expressed in a narrow range reflecting the majority of bids, offers and transactions.The assessment is basis CIF Busan, duty-unpaid, VAT not included, transportation in the next 45 days from date of transaction, payment terms LC at sight and cash against documents. Trades CIF Incheon will be normalized to CIF Busan, and other domestic and regional transactions may be considered for trend purposes.
The South Korea Aluminum Premium assessment is alongside other Metal prices available in the following Platts services.
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