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LME Selects Fastmarkets as MJP Aluminium Premium Partner

Metal News - Published on Mon, 18 Nov 2019

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Leading source of pricing data for the global commodity markets Fastmarkets announced that it has been selected by the London Metal Exchange as its partner to launch a Main Japanese Ports Premium contract in the second half of 2020. The contract will settle against Fastmarkets Aluminium P1020A Spot CIF Main Japanese Ports price. Detailed contract specifications will be made available to market participants in the coming months.

In recent years, the Japanese aluminium market has shifted away from the traditional quarterly benchmark premium system to purchase more units on the spot market and reduce its exposure to price volatility. In 2019, the migration continued to accelerate. The strong correlation between the quarterly and spot premiums is increasing the credibility of the spot premium assessments and reinforcing the use of the spot futures contracts as a valid hedging tool for both spot and quarterly contracts.

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Posted By : Rabi Wangkhem on Mon, 18 Nov 2019
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