Japan Primary Aluminium Premium to Drop by US$ 6 to US$ 76-77/t

Japan primary aluminium premium negotiations are almost settled to decrease by US$ 6 to US$ 76-77 per tonne at CIF Japan for January-March from October-December, which represents first drop in 4 quarters. Some negotiations were settled at US$ 75 or US$ 78. The negotiation is closing at less than US$ 80 when the supply is enough to the domestic requirement.

Primary aluminium ingot makers offered US$ 80 per tonne for January-March while Japanese buyers expected around US$ 75. They finally agreed to settle at US$ 76-77 after the hard negotiation.

Some Japanese interests expected the premium could decrease widely for January-March after the jump for October-December when aluminium ingot market is in backwardation at London Metal Exchange. However, the drop was only US$ 6 per tonne when Japanese demand recovers. The US premium decreased to less than 4 US cents per pound while the European premium keeps firm. Japanese aluminium port inventory keeps decreasing at less than 230,000 tonnes.