Aluminium P1020A premium, CIF Thailand , $/tonne ,Price Announcement. [SMM Announcement]

Criteria for Determining the Premium for Imported Aluminum Ingots (CIF Thailand, P1020A) by SMM

1. General Rules of SMM Price Assessment Methodology
SMM (hereinafter referred to as SMM) is a completely independent third-party service provider that does not participate in any substantive transactions. Instead, it maintains close communication with buyers or sellers in transactions as a market observer or organizer, and provides relevant services to the market. SMM continuously formulates, reviews, and revises its methodologies through communication with industry insiders, adopting the most common product specifications, trade terms, and trade conditions in the industry. It attaches equal importance to normal transactions that meet the specification standards. SMM reserves the right to exclude any price data information deemed to be of poor reliability or non-representative from its price assessments.
SMM publishes daily spot metal prices (or indices, etc., including the Chinese market or markets outside China), commonly referred to as SMM prices. SMM has formulated corresponding methodologies for all the SMM prices it publishes (which will be published on SMM's official website www.smm.cn for inquiry). The methodologies stipulate the methods and procedures for the formation and publication of SMM prices, and SMM strictly adheres to these methodologies in forming and publishing its prices.
This document stipulates the criteria and management methods for determining the premium for imported P1020A aluminum ingots (CIF Thailand). The purpose of SMM in formulating these criteria is to establish a transparent and verifiable SMM price-setting mechanism, providing market participants with an important pricing indicator.
The SMM Benchmark Management Committee also regularly reviews the methodologies and their assessment and publication processes. This committee maintains oversight of SMM's methodologies and compilation processes, ensuring that prices or indices can reflect the objective conditions of the physical spot market for the relevant commodities as accurately as possible. If the committee identifies any issues, it will immediately point them out and propose external consultations and modifications to the ongoing methodologies or processes, thereby enhancing the quality of the prices or indices published by SMM. The committee can only propose modifications to the methodologies and procedures adopted for future price or index assessments; it cannot change prices or indices that have already been published. 2. Formation of SMM's CIF Thailand P1020A Spot Premium
Background: Thailand is the largest automotive manufacturing hub in Southeast Asia, with renowned automotive companies establishing manufacturing plants there. The automotive industry contributes 12% to GDP. The automotive parts industry is well-developed, with over 60% of the world's top 100 automotive parts suppliers having production hubs in the country. As the automotive industry moves towards lightweighting, aluminum materials, as important lightweighting materials, are increasingly used in automobiles, such as in step boards, roof racks, and window frames, leading to a growing demand for aluminum in the automotive industry. Additionally, with the support of the Thai government, the home appliance and electronics industries have also developed rapidly, with aluminum consumption continuing to increase. Given Thailand's lack of aluminum resources, it continues to rely on imports of primary aluminum. Against this backdrop, SMM has launched CIF Thailand aluminum ingot quotes for market reference and settlement.
The CIF Thailand P1020A spot premium is formed and published according to this methodology, serving as an indicative price that can be used by both trading parties as a reference for CIF Thailand P1020A spot trade settlement. This price reflects the actual or potentially tradable spot transaction price range for CIF Thailand P1020A spot imports at the time of publication on each full working day. It will be officially launched on July 7, 2025, and historical prices can be viewed simultaneously on the SMM official website (smm.cn).
Definition: The premium for P1020A aluminum ingot transactions delivered to Laem Chabang Port, Thailand, compared to LME 3-month aluminum plus qp swap.
Sources of Original Data Information
2.1 Price Collection from Price Submitters
2.1.1 Requirements for Smelters
a. Have a standardized sales model, smooth sales channels, relatively stable sales volumes, a certain level of influence and reputation, operate legally and honestly, and enjoy a good market reputation.
b. Be able to objectively and truthfully report the actual production and sales situations of the enterprise, including production, operating rate, product quality, selling price, sales volume, sales destinations, product inventory, etc., and maintain good communication with SMM price analysts on these matters. c. Have a certain understanding and expectation of the macroeconomic situation and transactions in the spot aluminum market, and maintain good communication with SMM price analysts on this.
2.1.1.1 Requirements for traders
a. Engage in spot imports of aluminum ingots for more than one year, with an average annual purchase and sales volume exceeding 50,000 mt on a unilateral basis. Have standardized purchase and sales models, smooth purchase and sales channels, relatively stable purchase and sales volumes, a certain level of influence and reputation, operate legally and honestly, and enjoy a good market reputation.
b. Objectively and truthfully report the actual situation of the enterprise's aluminum purchases and sales, including product quality, purchase and sales prices, purchase and sales volumes, sources of procurement and sales destinations, and product inventory, and maintain good communication with SMM price analysts on this.
c. Have a certain understanding and expectation of the macroeconomic situation, the current state of the aluminum market industry, and market transactions, and maintain good communication with SMM price analysts on this.
Requirements for downstream enterprises
a. Objectively and truthfully report the actual situation of the enterprise's own purchases, including product quality, purchase prices, purchase volumes, sources of procurement, and inventory, and maintain good communication with SMM price analysts on this.
2.1.2 Method of price collection
SMM will, in accordance with the price submitter agreement, regularly (between 10:30 a.m. and 12:00 p.m. each trading day) collect relevant data information on CIF Thailand spot prices from the price collection contacts of price submitters through phone calls, QQ, WeChat, fax, and email, etc. Price data information submitted after 12:00 p.m. will not be used as the basis for price assessment on that day. Incomplete data lacking the required minimum information details will not be used even if submitted before the deadline. This price data information may include prices for transactions already concluded on the day, the most likely expected prices for pending transactions, offers, counteroffers, etc. The frequency of price collection will be determined based on the trade volume and frequency of different price submitters. Prices will not be collected from all contracted units every day, but contact will be maintained at least twice a week. 2.2.1 CIF Thailand P1020A
The minimum standard requires an aluminum purity of 99.7% (with a maximum of 0.1% Si and 0.2% Fe).
2.2.2 Transaction price/counteroffer/offer, etc.
The quoted price can be the actual transaction, counteroffer, or offer price data of the price submitter, or the transaction, counteroffer, or offer price data of other market participants, or the market price range. The unit is US dollars per metric ton ($/mt), with no decimal places.
2.2.3 Quantity
The quantity of a single transaction is 200 mt or more.
2.2.4 Order delivery cycle
Within four weeks
2.2.5 Payment terms
Payment terms under the negotiated transaction agreement, such as cash telegraphic transfer, letter of credit payment, etc.
2.2.6 Delivery location
Delivery at Laem Chabang Port
2.2.7 Payment method and terms
Payment method: LC, DP, TT, cash telegraphic transfer, etc.; Payment terms: Usually, payment is completed within two working days after the delivery of the B/L.
2.2.8 Pricing unit
US dollars per metric ton ($/mt)
2.2.9 Presentation form
Presented in the form of a range, as a US dollar price excluding tax
2.2.10 Release time
11:00 AM Thailand time (12:00 PM Beijing time) every trading day. (Excluding Chinese public holidays and weekends)
2.3 Price assessment process
SMM conducts price assessment work from 11:00 AM to 12:00 PM every trading day, with the specific process as follows:

2.3.1 Price Announcement
SMM will formulate and publicly announce prices on its official website at www.smm.cn, in accordance with the following standards and regulations.
The announcement time is set at 12:00 PM on trading days of each legal working day in China.
However, the announcement time may also be affected by various emergencies and force majeure factors, such as power outages and natural disasters. In such cases, SMM will make every effort to promptly inform the market of the delayed price announcement time.
2.3.2 Correction of Published Prices
After the price announcement, if any errors are discovered, regardless of whether they are caused by incorrect operations or calculation errors, SMM will promptly issue a correction notice and rectify the errors.
2.4 Methodology Changes
All markets are subject to change, and SMM has the responsibility to ensure that its methodologies for market reports evolve in tandem with the market. Therefore, SMM will regularly conduct internal reviews of the appropriateness of its methodologies based on industry feedback. For all potential substantive but non-urgent modifications, SMM will follow a formal external consultation process. Subsequently, significant changes will be announced with a notice period of at least 28 days, inviting industry participants to provide comments, unless there are special circumstances, particularly force majeure events (natural disasters, wars, exchange bankruptcies, etc.) that necessitate a shorter notice period.
For any inquiries, please contact Keira Yu from SMM at 021-20707848 or 1786289952.