CFTC plans overhaul of US aluminum pricing system
Reuters reports the CFTC is preparing to reshape US aluminum pricing and is weighing new contracts that could improve transparency for buyers and producers.
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what happened
The US Commodity Futures Trading Commission plans to overhaul how aluminum is priced in the United States and is examining whether new contracts could make the market more transparent. Chairman Michael Selig said so on Friday, according to Reuters.
US buyers usually pay the London Metal Exchange benchmark plus the Midwest premium, which Platts, part of S&P Global, assesses to cover freight, insurance and taxes. The premium reached a record $1.19 per lb, about $2,620 per metric ton, in early June, more than double a year earlier after President Donald Trump doubled tariffs on US aluminum imports to 50%. With LME prices above $3,700 due to shortages from the war in the Middle East, the all-in cost for US consumers exceeded $6,000 a ton.
Selig said he had asked his team to study these pricing mechanisms and develop reform options, and that a US-based contract would only work if producers and consumers trade it. S&P did not immediately respond to a request for comment.
why it matters
Aluminum matters for autos, aerospace, packaging and construction, and expensive metal squeezes margins and can feed inflation. If the domestic premium moves closer to physical market levels, costs for US can and beverage makers could ease, but for now this is only a regulator's plan.
market impact
US aluminum: planned pricing reform could weigh on the Midwest premium over time
- Midwest premium pressure down — reform could align the US price more closely with physical market supply
tags
instruments
sources
- CFTC plans to overhaul aluminum pricing in US — Reuters, 13 November 2026 at 17:33 UTC
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