Japan Aluminium Premium May Down to US$ 68/t for 3Q

The premium price of aluminium primary ingot is likely to be settled at around US$ 68 per tonne including cost, insurance and freight which will be shipped from overseas aluminium producers to Japanese buyers for July-September 2007. The price will continue decreasing which downed to CIF US$ 71-73 per tonne for April-June shipment. The price negotiation for July-September will be concluded in a few days.In the recent price negotiations, overseas aluminium producers have shown strong selling stances at the beginning of every negotiation against Japanese buyers’ price down offers. For July-September 2007, the mind gap was relatively small since primary aluminium supply is recently rather surplus in Japan. The aluminium producers and the buyers basically agreed to reduce the premium price for the third quarter. Japanese aluminium buyers are continuing the price negotiation to settle the premium at less than CIF US$ 70 per tonne. Some seemed to agree at CIF US$ 70 per tonne, while others target CIF US$ 67 with the producers’ accommodation. Japanese buyers focus how much the premium could be decreased for 3Q shipment. The premium price for primary aluminium ingot was in uptrend in 2004 and turned to downtrend in 2005. The price recovered in 2006 and turned to down tone in 2007.