Japan Primary Al Premium Talk to Settle at US$ 130/t Level for January-March

Japanese primary aluminium buyers are concluding the premium negotiation at US$ 128-133 per tonne CIF Japan for January-March shipment. The premium will increase for 3 quarters in a row while some Japanese buyers are still seeking lower premium. The premium increase is less than half of US$ 40 hike in October-December.

The suppliers sought more than US$ 130 per tonne of Japan premium for January-March. Japanese buyers resisted the higher premium when Japanese demand is still slow. The suppliers reduced the offer to around US$ 130 and some Japanese buyers started to accept the offer. The negotiation is expected to continue through the week and to be concluded at around US$ 130.

The premium decreased to less than US$ 60 per tonne in April-June due to slow demand. The premium increased in July-September and the premium reached US$ 100 in October-December under Asian tight supply after inventory adjustment.

Many of Japanese industry expect the premium will decrease in April-June due to higher production in Middle East. However, the premium could keep high level depending on the demand recovery.