Japan Primary Al Premium Hits First Increases in 3-Quarter

Japanese primary aluminium users and offshore smelters almost agreed in the quarterly premium hike by US$ 9-10 per tonne for April-June compared with the previous quarter. The premium increases for the first time since July-September 2011. About 80% of the negotiations seem to have concluded at around US$ 121-122 per tonne. Meanwhile, about 10% was concluded at US$ 115 and the rest 10% at US$ 127. The premium range widened.

One offshore large smelter initially offered US$ 132 against Japanese customers and oher smelters showed US$ 115-129 for April-June. They raised the premium offers to reflect premium upsurges in Europe and North America, output reduction and troubles at the smelters, as well as global supply tightness of primary aluminium ingot.

Japanese major trading houses and aluminium re-rollers immediately closed the negotiations with the smelters offering US$ 115 and mostly agreed with other smelters at US$ 121-122. The large smelter who initially requested US$ 132 lowered the offer price to US$ 127 at last.