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Price notice: Base metal premiums

Apr 07, 2020 | 01:50 PM | New York | Chris Kavanagh

Tags  base metals, aluminium, copper, lead, zinc, premiums, warrant


Fastmarkets is proposing a comprehensive specification update of several US base metal premiums to bring them in line with its global reporting price reporting agency standards.

The planned update will serve to update and correct numerous base metal premium specifications to meet the uniform global standard. The corrections proposed include updates to publication dates, the frequency of assessments and minimum tonnages required. The commodities affected include aluminium, copper, zinc, lead and tin.

The current listed specifications for the commodities affected are as follows:

MB-AL-0020 : Aluminium P1020A premium, ddp Midwest US, US cents/lb
Quality: London Metal Exchange specification P1020A or 99.7% minimum Al purity (silicon 0.10% max, iron 0.20% max, zinc 0.03%, gallium 0.04%, vanadium 0.03%)
Location: Delivered consumer works Midwest
Unit: US cents per pound
Quantity: 20 tonnes
Publication:  Twice a week, every Tuesday and Thursday

MB-AL-0231: Aluminium P1020A all-in price, delivered Midwest US, US cents/lb
Quality: London Metal Exchange specification P1020A or 99.7% minimum Al purity (silicon 0.10% max, iron 0.20% max, zinc 0.03%, gallium 0.04%, vanadium 0.03%)
Location:  Delivered consumer works Midwest
Unit:  US cents per pound
Formula:    London Metal Exchange cash aluminium PM bid price plus AMM Midwest aluminium premium
Quantity:   20 tons
Publication:  Daily

MB-AL-0355: Aluminium P1020A premium, cif Baltimore, US cents/lb
Grade:   P1020A or 99.7% minimum aluminium purity (silicon 0.10% maximum, iron 0.20% maximum)
Location:    Shipped to ports in Baltimore, Maryland, premium on top of London Metal Exchange cash prices, net back to Baltimore
Unit:   US cents per lb
Quantity:   100 tonnes
Form:   Ingot
Payment terms:   30 days, other payment terms normalized
Publication:   Weekly

MB-AL-0356: Aluminium P1020A all-in-price, cif Baltimore, US cents/lb
Grade: LME specification P1020A or 99.7% minimum aluminium purity (silicon 0.10% maximum, iron 0.20% maximum, zinc 0.03% maximum, gallium 0.04% maximum, vanadium 0.03% maximum)
Location:   Delivered consumer works Midwest US, premium on top of LME cash prices, net back to Baltimore
Unit:   US cents per lb
Quantity:   100 tonnes
Formula:    London Metal Exchange cash aluminium PM bid price plus American Metal Market’s P1020 premium cif Baltimore, Maryland, ports
Delivery:   Within four weeks
Form:   Ingot
Payment terms:   30 days, other payment terms normalized
Publication:   Daily

MB-AL-0338: Aluminium P1020A warrant premium, in-whs US, $/tonne
Grade:   P1020A or 99.7 % Minimum Al purity (Si 0.10% max, Fe 0.20% max)
Location:    In any LME-approved warehouse in the USA (10 delivery points in June 2017), premium on top of LME cash prices
Unit:   USD per tonne
Quantity:   25 tonnes
Form:   Ingot, T-bars, Sow
Payment terms:    Cash against documents (7 days after bill of lading date); other terms normalized
Delivery window: Prompt Release
Publication:   Weekly. Tuesday between 3pm and 4pm London time

MB-AL-0360: Aluminium 6063 extrusion conversion margin, exw US Midwest, cents/lb
Grade:   Extrusion billet ingot to meet Aluminum Association specification AA6063 US. Aluminium 99.45%, silicon 0.200.60%, iron 0.35%, copper 0.10%, manganese 0.10%, magnesium 0.450.90%, chromium 0.10%, zinc 0.10%, titanium 0.10%
Location:  Delivered Midwest
Unit:  US cents per pound
Quantity:  20 tons
Publication:  Every two weeks, Thursday

MB-CU-0310: Copper grade 1 cathode premium, ddp Midwest US, US cents/lb
Quality:      Delivered premium over cost of Grade 1 Electrolytic Copper Cathode as adopted by the American Society for Testing and Materials (B115-00)
Quantity:  Min 25,000 lbs
Location:   Delivered Midwest
Unit:  US cents per pound
Publication:  Weekly, Tuesday

MB-PB-0097: Lead 99.97% ingot warrant premium, in-whs US, $/tonne
Quality: Lead cathode of 99.97% to 99.99% purity conforming to LME specification BS EN 12659:1999, GB/T 469/2005 or ASTM B29-03 (2009)
Quantity: Min 25 tonnes
Location: In any LME-approved warehouse in the US, premium on top of LME cash prices
Timing: Prompt release
Unit: USD per tonne
Payment terms: Cash, other payment terms normalized
Publication: Weekly. Tuesday between 3pm and 4pm London time

MB-SN-0011: Tin grade A min 99.85% ingot premium, ddp Midwest US, $/tonne
Quality:  Delivered premium over cost of tin of 99.85% purity (min) conforming to BS EN 610:1996
Quantity:  Min 20 tonnes
Location:  ddp US Midwest
Unit:  US dollars per tonne
Publication:  Weekly, Tuesday

MB-SN-0036: Tin 99.85% ingot premium, in-whs Baltimore, $/tonne
Quality:    Ingot. Minimum 99.85% tin purity conforming to LME specification: BS EN 610:1996, max 500ppm lead, total impurities must not exceed 0.15%
Quantity:   Min 20 tonnes
Location:   In-warehouse Baltimore
Unit:   USD per tonne
Payment terms:   Cash against documents, other payment terms normalized
Publication:   Weekly. Tuesday 3pm to 4pm London time
Notes:    Premium on top of LME cash prices

MB-ZN-0104: Zinc SHG min 99.995% warrant premium, in-whs US, $/per tonne
Quality: Ingot. Special High Grade zinc of minimum 99.995% purity, conforming to LME specifications and relevant standards: BS EN 1179:2003, ISO 752:2004 - ZN-1 grade, ASTM B6-12 - LME grade or GB/T 4702008
Quantity: Min 25 tonnes
Location: In any LME-approved warehouse in the USA
Timing: Prompt release
Unit: USD per tonne
Payment terms: Cash, other terms normalized
Publication:  Weekly. Tuesday 3-4pm London
Notes:    Premium on top of LME cash prices

The consultation period for these changes runs from March 13 to April 13, with changes - subject to market feedback - being implemented beginning April 16.

The proposed revised price specifications are as follows, with changes highlighted in bold:

MB-AL-0232 : Aluminium P1020A premium, ddp Midwest US, US cents/lb
Quality: London Metal Exchange specification P1020A or 99.7% minimum Al purity (silicon 0.10% max, iron 0.20% max, zinc 0.03%, gallium 0.04%, vanadium 0.03%)
Location: Delivered consumer works Midwest
Unit:  US cents per lb
Quantity:  100 tonnes
Payment Terms:  30 days, other payment terms normalized
Timing:  Within 4 weeks
Form:  Ingot, T-bar, Sow
Publication:  Twice a week, every Tuesday and Friday between 3pm and 4pm London time

MB-AL-0231: Aluminium P1020A all-in price, delivered Midwest US, US cents/lb
Quality:   London Metal Exchange specification P1020A or 99.7% minimum Al purity (silicon 0.10% max, iron 0.20% max, zinc 0.03%, gallium 0.04%, vanadium 0.03%)
Location:   Delivered consumer works Midwest
Unit:  US cents per lb
Formula:     London Metal Exchange cash aluminium PM bid price plus Fastmarkets’ Midwest aluminium premium
Quantity:    100 tonnes
Publication:   Daily

MB-AL-0355: Aluminium P1020A premium, cif Baltimore, US cents/lb
Grade:    P1020A or 99.7% minimum aluminium purity (silicon 0.10% maximum, iron 0.20% maximum)
Location:     Shipped to ports in Baltimore, Maryland, premium on top of London Metal Exchange cash prices, net back to Baltimore
Unit:    US cents per lb
Quantity:    100 tonnes
Form:    Ingot, T-bar, Sow
Payment terms:    30 days, other payment terms normalized
Timing:  Within four weeks
Publication:    Weekly, every Tuesday between 3pm and 4pm London time

MB-AL-0356: Aluminium P1020A all-in-price, cif Baltimore, US cents/lb
Grade:    LME specification P1020A or 99.7% minimum aluminium purity (silicon 0.10% maximum, iron 0.20% maximum, zinc 0.03% maximum, gallium 0.04% maximum, vanadium 0.03% maximum)
Location:    Delivered consumer works Midwest US, premium on top of LME cash prices, net back to Baltimore
Unit:    US cents per lb
Quantity:    100 tonnes
Formula:     London Metal Exchange cash aluminium PM bid price plus Fastmarkets’ P1020 premium cif Baltimore, Maryland, ports
Delivery:    Within four weeks
Form:    Ingot, T-bar, Sow
Payment terms:    30 days, other payment terms normalized
Publication:    Daily

MB-AL-0338:  Aluminium P1020A warrant premium, in-whs US, $/tonne
Grade:    P1020A or 99.7 % Minimum Al purity (Si 0.10% max, Fe 0.20% max)
Location:     In any LME-approved warehouse in the US (10 delivery points in June 2017), premium on top of LME cash prices
Unit:    US dollars per tonne
Quantity:    25 tonnes
Form:    Ingot, T-bars, Sow
Payment terms:     Cash against documents (7 days after bill of lading date); other terms normalized
Delivery window:  Prompt Release
Publication:    Weekly, every Wednesday between 3pm and 4pm London time

MB-AL-0360:  Aluminium 6063 Extrusion conversion margin, exw US Midwest, cents/lb
Grade:    Extrusion billet ingot to meet Aluminum Assn specification AA6063 US. Aluminium 99.45%, silicon 0.200.60%, iron 0.35%, copper  0.10%, manganese 0.10%, magnesium 0.450.90%, chromium 0.10%, zinc 0.10%, titanium 0.10%
Location:   Delivered Midwest
Unit:   US cents per lb
Quantity:   100 tonnes
Payment terms:  30-day payment, other payments terms normalized
Timing:  Within 2 months
Form:  Billet with diameter of 6”, 7” and 8”
Publication:   Every two weeks. Friday between 3pm and 4pm London time

MB-CU-0310:  Copper grade 1 cathode premium, ddp Midwest US, US cents/lb
Quality:       Delivered premium over cost of Grade 1 Electrolytic Copper Cathode as adopted by the American Society for Testing and Materials  (B115-00)
Quantity:   Min 20 tonnes
Location:    Delivered Midwest
Unit:   US cents per lb
Payment Terms:  30-day payment, other payments terms normalized
Timing:  Within 4 weeks
Form:  Cathode
Publication:   Weekly, every Tuesday between 3pm and 4pm London time

MB-PB-0097:  Lead 99.97% ingot warrant premium, in-whs US, $/tonne
Quality:     Lead cathode of 99.97% to 99.99% purity conforming to LME specification BS EN 12659:1999, GB/T 469/2005 or ASTM B29-03 (2009)
Quantity:    Min 25 tonnes
Location:     In any LME-approved warehouse in the US, premium on top of LME cash prices
Timing:    Prompt release
Unit:    US dollars per tonne
Payment terms:    Cash, other payment terms normalized
Publication:    Weekly, every Wednesday between 3pm and 4pm London time

MB-SN-0011:  Tin grade A min 99.85% ingot premium, ddp Midwest US, $/ tonne
Quality:   Delivered premium over cost of tin of 99.85% purity (min) conforming to BS EN 610:1996
Quantity:   Min 20 tonnes
Location:   ddp US Midwest
Unit:   US dollars per tonne
Payment terms:  30-day payment, other payments terms normalized
Timing:  Within 2 weeks
Publication:   Every two weeks. Tuesday between 3pm and 4pm London time.

MB-SN-0036:  Tin 99.85% ingot premium, in-whs Baltimore, $/tonne
Quality:     Ingot. Minimum 99.85% tin purity conforming to LME specification: BS EN 610:1996, max 500ppm lead, total impurities must not exceed 0.15%
Quantity:    Min 20 tonnes
Location:    In-warehouse Baltimore
Unit:    US dollars per tonne
Payment terms:    Cash against documents, other payment terms normalized
Timing:  Within 4 weeks
Publication:    Every two weeks. Tuesday between 3pm and 4pm London time
Notes:    Premium on top of LME cash prices

MB-ZN-0104:  Zinc SHG min 99.995% warrant premium, in-whs US, $/per tonne
Quality:  Ingot. Special High Grade zinc of minimum 99.995% purity, conforming to LME specifications and relevant standards: BS EN 1179:2003, ISO 752:2004 - ZN-1 grade, ASTM B6-12 - LME grade or GB/T 4702008
Quantity:    Min 25 tonnes
Location:    In any LME-approved warehouse in the US
Timing:    Prompt release
Unit:    US dollars per tonne
Payment terms:    Cash, other terms normalized
Publication:    Weekly, every Wednesday between 3pm and 4pm London time
Notes:   Premium on top of LME cash prices

To provide feedback on this assessment or if you would like to provide price information by becoming a data submitter to these premiums, please contact Christopher Kavanagh by email at pricing@fastmarkets.com. Please add the subject heading: FAO: Christopher Kavanagh re: US base metal premiums.

To see all of Fastmarkets' pricing methodology and specification documents, click here.


 

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