CFTC Chief Pushes Review of U.S. Aluminum Pricing and Possible Futures

what happened

Michael Selig, chairman of the U.S. Commodity Futures Trading Commission, said on Friday that he has instructed his staff to prepare reform options for the domestic aluminum market, including possible U.S.-listed futures. He spoke at a gathering of beer industry representatives in Washington, according to the Wall Street Journal.

The Midwest Premium, which S&P Global Energy calculates through Platts, has climbed to a record above global benchmarks because of the 50% tariff President Trump placed on aluminum. A Platts spokesperson said the daily assessment is based on real transactions and that its methodology is public and has been tested rigorously.

Selig stressed that the CFTC does not set commodity prices, but is studying futures settled by physical delivery for both primary and recycled aluminum.

why it matters

The core question is whether the Midwest Premium reflects real supply costs in the U.S. Primary aluminum output has shrunk on expensive power, while recycling, which needs far less electricity, keeps expanding. A new contract could change how American buyers hedge that exposure.

market impact

Aluminum: a possible reform could change how the U.S. Midwest Premium is priced

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