Fastmarkets launches low-carbon aluminium differential, responding to growing demand for green metal in Japan and South Korea
4 March 2024
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.
Source:prnewswire.com
