Primary Aluminium Japan Premium to Rise to US$ 83-85/t for April-June

Japanese buyers are concluding the negotiation with offshore suppliers to increase Japan premium for primary aluminium ingot to CIF US$ 83-85 per tonne for April-June shipment, which is near US$ 20 higher than January-March. With higher international market, premium increased after stay for January-March and decreases for 4 quarters in 2007. The suppliers offered US$ 85 per tonne of premium while Japanese buyers resisted the wide hike citing very slow building demand. Japanese buyers tried to seek less than US$ 80 of premium but they finally accepted the wide hike under supply concern with electricity supply trouble in China and South Africa. Primary aluminium market is expected to keep strong. Japan premium could increase for July-September under tight supply while US demand could slow down under recession. Japanese aluminium products suppliers would increase the selling price to cover higher cost price.