Flat Japan Primary Aluminium Premium for January-March

Japanese premium of primary aluminium is expected to settle at around US$ 65 per tonne CIF Japan for January-March as October-December. The premium finally stops the downward trend after drops for 4 quarters in a row. The suppliers offered flat premium for January-March from the beginning of the negotiation. Japanese buyers accepted the offer while some buyers still insist on certain reduction citing very slow domestic building demand. The premium could increase for April-June depending on the market with relative low inventory and higher freight cost. However, some interests are cautious with some negative factors including US subprime loan impact and slower demand in Europe.