According to SMM data, the US primary aluminum existing capacity in 2025 was 1.32 million mt, but by January 2026, the operating capacity was only 680,000 mt, with 70%–80% of demand relying on imports. Starting from June 4, 2025, the US raised the aluminum import tariff from 25% to 50%, which significantly increased import costs for US enterprises, while import premiums also moved wildly following inventory changes. The US Midwest is the absolute core market for aluminum consumption in the US and serves as the benchmark anchor for aluminum pricing in North America, accounting for approximately 60% of total US aluminum consumption. It functions as both the "pricing heart" of the North American aluminum industry chain and a key window for observing US industry and global aluminum trade, playing an irreplaceable role in stabilizing the North American market and optimizing global aluminum resource allocation.
Against this backdrop, SMM will begin publishing the US Midwest DDP aluminum premium starting February 27, 2026. Through daily market communication, SMM will introduce the Midwest tax-paid works-delivered premium (P1020A), i.e., the Aluminium P1020A premium, ddp Midwest US , cents/lb. This price will be based on representative tax-paid spot aluminum transactions delivered in the Midwest region, incorporating factors such as warrant transfer costs, regional logistics and freight, trading activity, and brand preferences to form a representative market settlement reference price. The price will be updated daily and displayed simultaneously on the SMM official website, where users can access historical trends and analytical data.
The release of this price aims to enhance price transparency in the global aluminum industry chain, provide a more refined pricing tool for industrial trade, long-term contract negotiations, processing and production, and other industrial activities, and contribute to more effective pricing in the global aluminum market.
The core indicators of the SMM US Midwest DDP aluminum premium are as follows:
For any inquiries or the complete methodology, please contact SMM Keira.
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