Japan Primary Al Premium to Drop for January-March

Japanese primary aluminium ingot premium is expected to decrease for January-March after drop to US$ 75-77 per tonne in October-December when the buyers start the negotiation soon. The world demand decreases sharply as plunge of the international market price after financial crisis. Japanese buyers seek major drop to the suppliers.

The suppliers offer around US$ 10 per tonne reduction to Japanese buyers. However, Japanese buyers seek much wider reduction when aluminium ingot price is less than US$ 1,600 per tonne at London Metal Exchange due to oversupply. LME’s aluminium inventory could reach 2 million tonnes when the stock already is more than 1.8 million tonnes.

Under the oversupply, Japanese buyers seek major reduction for the premium. Japanese demand is very slow for automobile along with information technology and other applications. The suppliers could be forced to compromise more when the demand is slump in Asian market.