Japan Al Premium Talk to Take More Time for Settlement

Japanese primary aluminium premium negotiation for January-March 2009 steps forward when the suppliers reduced the indication from original level. However, the negotiation could take more time when Japanese buyers seek much lower level.

The suppliers offered US$ 60 per tonne for the quarter originally while Japanese buyers sought much lower price under very slow domestic market. The suppliers reduced the offer by several dollars late last week. However, the buyers indicate more reduction would need for the settlement.

London Metal Exchange reported the aluminium inventory is more than 1.9 million tonnes. The oversupply impacts on the market price and Japanese ingot price for January-March decreases by 100 yen per kilogram. Japanese primary ingot buyers would keep seeking lower premium.