Fastmarkets launches low-carbon aluminium differential, responding to growing demand for green metal in Japan and South Korea

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Mar 04, 2024, 03:00 ET

LONDON, March 4, 2024 /PRNewswire/ -- Fastmarkets, an industry-leading cross-commodity price-reporting agency (PRA), has announced the launch of a new low-carbon aluminium differential price in Asia.

The launch of a low-carbon aluminium price differential responds to the increasing demand for sustainable materials in the automotive and manufacturing sectors in Asia. Recognizing the inflow of low-carbon aluminium to Japanese and South Korean markets, and the readiness of these sectors to pay a premium over conventional aluminium, Fastmarkets aims to establish a transparent pricing mechanism that reflects the growing green economy in Asia.

Starting March 1, Fastmarkets will publish a CIF Japan and South Korea differential, making it the premier PRA to price East Asia's low-carbon aluminium. The launch of the price expands Fastmarkets' suite of low-carbon aluminium prices to include Asia and complements its European and US prices.

The CIF Japan and South Korea low-carbon aluminium differential is assessed against the CIF major Japanese ports premium, Fastmarkets' benchmark price for aluminium in Asia.

The differential features a robust specification as follows:

Carbon limit: 4tCO2e per tonne of aluminium produced (Scope 1 and 2 emissions)
Quality: P1020A or 99.7% minimum aluminium purity
Quantity: Minimum of 100 tonnes
Location: Delivered to Japan & South Korea
Delivery window: Within three months
Unit: USD per tonne
Publication: Monthly, first Friday of the month, 4 pm London time

Raju Daswani, CEO of Fastmarkets, underlines the company's commitment to providing prices, news and analysis to a fast-evolving market, stating, "We are excited to lead the charge in pricing transparency for sustainable commodities, especially at a time when the industry at large is moving towards a greener future."

With this launch, Fastmarkets reaffirms its reputation as a standard-bearer of innovation in commodity pricing, alongside notable actions such as pricing black mass, launching an Asia green steel differential and a new European carbon-reduced flat steel price.

ABOUT FASTMARKETS

Fastmarkets is an industry-leading price-reporting agency (PRA) and information provider for global commodities, providing price data, news, analytics and events for the agriculture, forest products, metals and mining and new-generation energy markets. Fastmarkets' data is critical for customers seeking to understand and predict dynamic, sometimes opaque markets, enabling trading and risk management. Fastmarkets is a global business with a history dating back to 1865 and is built on trust and deep market knowledge. It has more than 600 employees spread across global locations in the UK, US, China, Singapore, Brazil, Belgium, Finland and beyond.

SOURCE Fastmarkets