Proposal to launch three aluminium import premiums for Mexico
Mexico does not produce primary aluminium, it only imports it. These launches reflect a growing and liquid Mexican aluminium market as well as the need for transparency and price references in the country.
There is also an evolving marketplace for low-carbon aluminium in North America in general, which Fastmarkets has been partially monitoring since the launch of two low-carbon aluminium differentials for the US market in 2023. This trend is expected to continue to grow globally as the industry increasingly focuses on decarbonization.
The current methodology for the low carbon differentials can be found here.
The proposed specifications are as follows:
Aluminium P1020A premium, cif Mexico, $/tonne
Quality: P1020A or 99.7% minimum Al purity (Si 0.10% max, Fe 0.20% max). Ingot, T-bar, sow
Quantity: Min 100 tonnes
Location: CIF Mexico main ports Veracruz, Altamira or Manzanillo (other ports normalized); premium on top of LME exchange-listed aluminium price
Unit: USD per tonne
Timing: Any transaction data concluded within 4 weeks
Payment terms: Cash against documents (within 7 days after bill of lading date), other payment terms normalized
Publication: Fortnightly, Tuesdays, 3-4pm London time
Aluminium 6063 extrusion billet premium, cif Mexico, $/tonne
Quality: Extrusion billet AA6063. Billet with diameter of 7”, 8”, 9” and 10”
Quantity: Min 100 tonnes
Location: CIF Mexico main ports Veracruz, Altamira or Manzanillo (other ports normalized); premium on top of LME exchange-listed aluminium price
Unit: USD per tonne
Timing: Any transaction data concluded within 3 months
Payment terms: Cash against documents (within 7 days after bill of lading date), other payment terms normalized
Publication: Fortnightly, Tuesdays, 3-4pm London time
Aluminium low-carbon differential P1020A, cif Mexico, $/tonne
Carbon limit: 4 tCO2e per tonne of aluminium produced, Scope 1 and 2 emissions
Quality: P1020A or 99.7% minimum Al purity (Si 0.10% max, Fe 0.20% max). Ingot, T-bar, sow
Quantity: Min 100 tonnes
Location: CIF Mexico main ports Veracruz, Altamira or Manzanillo (other ports normalized); differential on top of P1020A premium and LME exchange-listed aluminium price
Unit: USD per tonne
Timing: Any transaction data concluded within 18 months
Publication: Monthly, last Tuesday of the month, 3-4pm London time
These prices will be part of the Fastmarkets base metals package.
The consultation period for this proposed launch starts from Wednesday February 5 and will end on Thursday March 6. Subject to market feedback, the launches for the fortnightly prices — P1020A and billet premiums — will take place on Tuesday March 11, and the launch for the monthly low-carbon differential for P1020A will take place on Tuesday March 25.
To provide feedback on these prices or if you would like to provide price information by becoming a data submitter to those prices, please contact Letícia Simionato by email at pricing@fastmarkets.com. Please add the subject heading “FAO: Letícia Simionato re: Aluminium premiums Mexico.”
Please indicate if comments are confidential. Fastmarkets will consider all comments received and will make comments not marked as confidential available upon request.
To see all Fastmarkets pricing methodology and specification documents, go to: https://www.fastmarkets.com/methodology.
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