Japan Primary Aluminium Premium Drops to US$ 65-66/t for Oct-Dec

Most of Japanese aluminium buyers concluded the negotiation to reduce the primary aluminium CIF Japan premium to US$ 65-66 per tonne for October-December, which represents drops for 4 quarters in a row and is lower than around US$ 68 for July-September. Some buyers still negotiate in range of US$ 64-67. The buyers sought less than US$ 65 per tonne of premium while the suppliers sought around US$ 75 for October-December. The suppliers tried to increase the premium when Asian supply gets tighter due to lower supply from China. Japanese buyers try to reduce the premium under slower domestic demand. The suppliers showed compromise to offer premium just less than July-September quarter level early September. Japanese buyers also accepted the offer to conclude the negotiation. Japanese industry interests have mixed view for the quarterly premium price outlook. Some expect the premium would keep decreasing while others see the premium could hit bottom depending on the domestic demand and supply condition.