Primary aluminium ingot is priced off the London Metal Exchange plus a regional premium. "A7" denotes 99.7% aluminium, comparable to the LME's P1020A standard, and is the grade most often quoted in physical offers from China, Russia, India and the Gulf.
Grades and specifications
| Grade | What it is | Price reference |
|---|---|---|
| A7 / P1020A ingot | Primary aluminium, Al min 99.70% | LME aluminium plus regional premium |
| A8, P0610 and higher purities | 99.8% and above | LME plus higher premium |
| Billets and slabs | Value-added alloy products | LME plus product premium |
| Alumina and bauxite | Smelter raw materials | Index assessments; CIF China for bauxite |
A7 / P1020A ingot: parameters commonly specified
| Parameter | Typical limit |
|---|---|
| Aluminium | min 99.70% |
| Iron | max 0.20% |
| Silicon | max 0.10% |
| Form | Ingots of about 20–25 kg, strapped in bundles of about 1 MT |
| Brand | Named smelter; LME-registered brand for exchange-deliverable metal |
Specifications vary by origin, buyer and contract. The contract specification, not a generic sheet, is what the inspector tests against.
Typical contract terms
- Pricing: LME cash or 3-month average for an agreed period, plus a premium (e.g. Rotterdam duty-paid, US Midwest, Japan)
- Incoterms: FOB, CIF or FCA in containers
- Lot sizes: Containers of about 25 MT; monthly programmes in thousands of tonnes
- Payment: LC at sight, or CAD against warehouse receipt
- Inspection: Weight and assay by an independent inspector; brand check
Documents
Seller provides
- Smelter mill certificate or certificate of analysis per lot
- LME brand certificate where applicable
- Certificate of origin
- Export licence where required
- Warehouse receipt for metal in storage
- Bill of lading, invoice, packing list
Buyer provides
- Letter of intent with grade, brand preference, quantity and delivery
- Bank details for verification
- End-use details where requested
Procedure
- Enquiry and specificationBuyerProduct, grade, quantity, packing, destination, delivery window, Incoterm and payment method, on company letterhead.
- KYC in both directionsBuyerSellerRegistry extracts, ownership, licences and bank details are exchanged and verified. See Documents Checklist.
- Offer and negotiationSellerA firm offer with price basis, validity, quantity tolerance, inspection and payment terms.
- ContractBuyerSellerA sales and purchase agreement on recognised contract terms, with law and arbitration named.
- Payment securityBanksDocumentary letter of credit at sight, confirmed where needed, or another instrument agreed in draft before issue.
- Inspection and loadingSellerInspector weighs, checks brand and markings, takes drillings for assay and supervises container loading.
- Documents and paymentBanksInvoice, bill of lading or warehouse receipt, certificates of analysis, weight and origin, and insurance under CIF.
Price reference
| Benchmark or range | Level | Basis |
|---|---|---|
| Aluminium LME | ~$3,242–3,373/MT | LME / market, 14 Aug 2026 |
Physical premiums differ by region and change monthly. Duty status (duty-paid or unpaid) changes the delivered price. Latest levels are in the Weekly Market Monitor.
- A7 ingot offered at "LME minus 10–20%": smelters do not sell primary metal at deep discounts to LME
- No named smelter or brand, or certificates that the smelter will not confirm
- Russian-origin metal, which is restricted in the US and UK and on the LME for new production
- Sellers asking for fees before an inspection at the warehouse
TradeScout24 Trade Desk · Sources: LME aluminium contract specifications; TradeScout24 Weekly Market Monitor, 14 Aug 2026 · General information, not an offer or legal advice · Last reviewed 31 Oct 2026