Metalshub Partners with LME to Drive Alumina Price Indexation

According to reports on October 2, the collaboration between Hindalco Industries, Metalshub, and the LME could generate key synergies for alumina pricing reform. Metalshub has partnered with the LME to generate transaction-based prices for low-carbon "green" nickel and is working with LME Insight (part of Commodity Pricing and Analysis, or CPAL). Both CPAL and the LME are owned by Hong Kong Exchanges and Clearing (HKEX). Under this arrangement, Hindalco conducts alumina tenders via Metalshub; the resulting prices are captured by Metalshub and fed into LME Insight for inclusion in a new alumina price index. This index could subsequently be "futures-enabled" by the LME to facilitate the relaunch of an alumina contract. Hindalco’s press release features comments from Saurabh Khedekar (Head of Alumina Business) and Sebastian Kreft (Managing Director of Metalshub), as well as Hugo Brodie (Head of Sustainability and Physical Market Development at the LME). Brodie stated that an independent, transaction-based price reference would enhance pricing transparency and overall market efficiency.