Primary Al Japan Premium to Drop to around US$ 60/t in January-March

Japanese premium of primary aluminium ingot would decrease by more than US$ 15 to around US$ 60 per tonne for January-March in ongoing negotiation. They are likely to conclude the talk soon. Some buyers settled the talk at US$ 58-63 while other buyers keep the talk to seek additional cut. The premium decreases for 2 quarters in a row under worldwide slow demand.

Japanese buyers sought major cut for the premium for January-March. Some buyers indicated US$ 40 per tonne of premium while the suppliers offered US$ 10 down to around US$ 65. Japanese buyers pressed on the suppliers to get wider reduction.

The premium decreased to US$ 75 per tonne for October-December. After financial crisis, aluminium demand decreases sharply and London Metal Exchange’s primary aluminium inventory increases to near 2 million tonnes. LME aluminium ingot price decreased to US$ 1,500 per tonne level from the peak.