Japan Aluminium Premium Price Increases to US$ 82-83/t for 4Q

The price negotiation almost finalized between Japanese aluminium buyers and overseas aluminium producers for October-December shipment. The premium price of aluminium primary ingot was settled at US$ 82-83 per tonne including cost, insurance and freight to Japan. The price increased by US$ 9 from July-September, increasing for 3 quarter terms in a row, while the price jumped up by more than US$ 10 for July-September shipment from April-June.The premium price owed the increase to low aluminium inventory at Japanese quays at about 250,000 tonnes currently. Japanese aluminium buyers have reduced their inventory when aluminium market stays relatively high at London Metal Exchange. The aluminium ingot supply maintains tight consequently. The premium price increased with another factor that primary ingot demand is strong in Asian area including South Korea, Thailand and China.Japanese aluminium buyers aimed the smaller increase of the premium price when the price continued to increase. However, aluminium producers sustained strong selling stances and the price was settled at around US$ 82 per tonne.The producers kept the premium price almost flat with the slight decrease in the USA and Rotterdam of Europe. Japanese buyers are afraid whether the price could continue to increase for January-March shipment.