Announcement on the European P1020A aluminium premium price [SMM Price Announcement]

1. Market Significance and Publication Scope of the European Aluminium P1020A Spot Premium

The Rotterdam P1020A premium is one of the most representative regional aluminium premiums globally, typically segmented into in-warehouse duty-unpaid and in-warehouse duty-paid. The duty-paid/duty-unpaid premium is widely referenced in European spot and long-term contracts, with the highest trading activity and sensitivity to local supply, demand, and logistics. The European premiums, alongside the US Midwest and Japan MJP premiums, constitute the global aluminium premium pricing framework and are widely recognised as key benchmarks in today’s international aluminium market. SMM maintains transparent, impartial, and consistent publication of both duty-paid and duty-unpaid premiums to support physical negotiations and risk management, boost market efficiency, and help stabilise pricing expectations across different market participants.

SMM European Aluminium P1020A Rotterdam duty-paid in-whs and duty-unpaid in-whs will be formed and published, referring to this methodology. These knowledge-based reference prices may be used by trading parties as a basis for spot contract settlements. The official launching date is 8th August 2025, and historical prices will be available on both www.smm.cn and www.metal.com.

2. Price Assessment Methodology

2.1 Definition

SMM European Aluminium premium P1020A Rotterdam duty-paid in-whs: Premium over LME aluminium official cash seller & settlement for duty-paid aluminium P1020A ingots in Rotterdam port warehouses.

SMM European Aluminium premium P1020A Rotterdam duty-unpaid in-whs: Premium over LME aluminium official cash seller & settlement for duty-unpaid aluminium P1020A ingots in Rotterdam port warehouses.

2.2 Data Collection

1. Sampling Approach

Price analysts at SMM will collect data through calls, instant messaging, and emails from designated contacts from price contributor companies. Essential pricing details must include: quote/transaction price, volume, delivery period, Incoterm, payment terms, and brand of ingots. Submissions of prices after 11:00 am London time on Fridays will not be considered for that week’s assessment. Incomplete price submissions with missing details will also be excluded.

Price data may include actual trades, expected tradable prices, offers, and bids. Actual transactions are given top priority in weekly assessments, followed by firm offers within $5/ton of actual transaction prices, and finally the mainstream indications of intended tradable prices. SMM will conduct cross-verification among sources. If any unjustified outliers are identified and the price contributor fails to provide a valid explanation, the price will be excluded and the reason for exclusion will be documented internally.

2.2.2 Sampling Window

The sampling window covers the period starting from the publication of the previous assessment up to 11:00 am London time on the current Friday. SMM ensures at least one interaction per week with each price contributor and a minimum of four valid data points per assessment (including trades, quotes, or firm intentions).

2.3 Requirements for Price Contributors

2.3.1 Aluminium Producers

• Must have a structured and transparent sales model, smooth and stable sales channels, and consistent transaction volumes. Companies should possess a certain level of market influence and brand recognition, operate legally and with integrity, and maintain a positive industry reputation.
• Should be able to objectively and truthfully provide detailed insights into their production and sales, including output, operating rates, product quality, transaction prices, sales volumes and destinations and inventory levels. Regular and effective communication with SMM price analysts is essential.
• Must have a sound understanding of macroeconomic trends and aluminium spot market dynamics, and be capable of sharing forward-looking insights with SMM on a regular basis.

2.3.2 Traders

• Must have engaged in aluminium ingot export/import trading for more than one year, with an average annual purchase & sales volume (on either the buy or sell side) of over 50,000 metric tons. Companies should maintain a structured procurement and sales model, smooth trading channels, and relatively stable transaction volumes. Companies should possess a certain level of market influence and brand recognition, operate legally and with integrity, and maintain a positive industry reputation.
• Should be able to objectively and truthfully report on the company's aluminium procurement and sales activities, including product quality, purchase and sales prices, transaction volumes, procurement sources, sales destinations and inventory levels. Regular and effective communication with SMM price analysts is essential.
• Must possess a sound understanding of macroeconomic trends, current aluminium industry conditions and market trading dynamics, and be capable of sharing forward-looking insights with SMM on a regular basis.

2.3.3 Downstream Processors

• Should be able to objectively and truthfully report on the company's aluminium procurement activities, including product quality, purchase prices, transaction volumes, procurement sources and inventory levels. Regular and effective communication with SMM price analysts is essential.

2.4 Specifications and Trade Terms

2.4.1 Specifications

P1020A Aluminium Ingot（Al ≥ 99.70 %，Si ≤ 0.10 %，Fe ≤ 0.20 %）。

Depending on the specific circumstances, non-P1020A ingots will be excluded from the assessment or recorded separately.

2.4.2 Volume

Deal size should be higher or equal to 100 metric tons.

2.4.3 Payment Terms

Payment terms agreed upon in the transaction contract, such as bank remittance, letter of credit, etc. Acceptable forms include LC, DP, TT, or cash wire.

2.4.4 Delivery Location

Rotterdam port warehouses.

2.4.5 Pricing Unit

USD/metric ton.

2.4.6 Publication Format

Price is published as a price range (from lower end to higher end).

2.4.7 Publication Time

The price is published weekly on Fridays at 12:00 pm London time. If a UK public holiday falls on the scheduled publication day, the release will be adjusted to the nearest working day within the same month. A public notice will be issued at least 48 hours in advance to inform market participants of such changes.

2.5 Price Assessment Workflow

Assessments take place between 11:00 am and 12:00 pm London time every Friday, with a specific workflow as illustrated by the following chart:

2.5.1 Price Publication

SMM forms its price assessment in accordance with the standards and procedures outlined above, and will publish prices on www.smm.cn and www.metal.com by 12:00 noon every non-holiday Friday in London.

In emergencies (e.g., natural disasters or blackouts), SMM will make every effort to notify the market as early as possible regarding any delay in the publication of prices and the new publication time.

2.5.2 Published Price Revisions

If errors regarding the price are identified after publication, whether caused by operational issues or calculation mistakes, SMM will promptly issue a correction announcement to ensure market participants are informed in a timely manner.

2.6 Methodology Updates

All markets evolve over time, and SMM has the responsibility to ensure that the pricing methodologies it reports to the market remain aligned with these changes. Therefore, SMM will conduct periodic internal reviews of the appropriateness of its methodologies based on feedback from market participants. For all material but non-urgent potential revisions, SMM will follow a formal external consultation process. Any significant change will be publicly announced with a minimum 28-day notice period to invite industry feedback, unless shortened due to exceptional circumstances, such as force majeure events (e.g., natural disasters, wars, or exchange bankruptcies).

3. Contacts

Name: Cathy, Xinyi Liu

Position: Aluminium Analyst, SMM London Office

Email: cathyliu@smm.cn

Tel/WhatsApp: +44 07919949818

Address: 99 Bishopsgate, London, EC2M 3XD