Sep 12 2022
Platts, a part of S&P Global Commodity Insights, will launch new daily low-carbon aluminum billet price assessments for the European market, effective Sept. 20, 2022.
In tandem with the launch, Platts will increase 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 will comprise daily assessments for Low-Carbon Aluminum Billet delivered duty paid Italy and Germany and associated monthly averages.
Platts will also introduce weekly averages for standard billet following the change in assessment frequency.
LCAB specifications are:
Low-Carbon Aluminum Billet DDP Italy
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 will 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 is launching 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 will be published in Platts Metals Daily, on Platts Dimensions Pro, and in the Platts price database under the symbols listed above.
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