Flat Japan Primary Al Premium in April-June

Japanese primary aluminium buyers are concluding the negotiation with offshore suppliers at US$ 112-114 per tonne of premium for April-June compared with US$ 112-113 for January-March. The premium is almost flat while Japanese buyers tried to reduce the premium and the suppliers sought US$ 4-5 of hike.

Japanese buyers rejected the higher offer when the domestic demand is normal level with sufficient volume of port inventory in April-June while the demand increases from January-March. The buyers required lower premium when spot premium is less than US$ 110 per tonne in Asian market.

Japanese buyers see the supply is balanced when UC RUSAL of Russia’s supply gets stable and Middle Eastern makers’ export increases for Asia. However, the buyers failed to reduce the premium when the world demand is still firm.

Japanese premium negotiation was deadlock for a while. However, the suppliers finally compromised to conclude the negotiation with Japanese buyers. Japanese buyers also finally accepted the high level premium to close the talk.