Fastmarkets proposes CBAM cost integration into aluminium P1020A premiums

Fastmarkets, the price reporting agency whose assessments underpin the London Metal Exchange’s (LME) physical aluminium trade, has proposed incorporating the cost of the European Union’s Carbon Border Adjustment Mechanism (CBAM) directly into the aluminium P1020A benchmark premiums for Italy and Spain. The move, set for implementation from January 1, 2026, could redefine how carbon costs are priced across Europe’s aluminium supply chain. The consultation paper, released in early October 2025, details that CBAM costs would be integrated into the existing aluminium P1020A premium assessments — MB-AL-0316 (Italy) and MB-AL-0319 (Spain) — reflecting logistics, warehousing, regional demand-supply balances, and prevailing duty costs.

Image for referential purposes only

The consultation period runs until October 31, 2025, after which Fastmarkets will finalise whether CBAM costs are to be embedded within or tracked separately from regional premiums.