Primary Al Japan Premium to Rise to Over US$ 100/t for Oct-Dec

Primary aluminium ingot premium for Japanese buyers could increase widely for October-December when the buyers and suppliers are concluding the negotiation. The premium would increase by 50-60% from July-September under tight supply in Asian market. Some suppliers concluded the premium at US$ 115 per tonne.

The premium was US$ 75-78 per tonne for July-September. The suppliers offered higher premium, which was more than double of the increase in July-September, for October-December as high as US$ 120-130. Some of the suppliers compromised and concluded the negotiation at US$ 115.

The suppliers seek more than US$ 100 per tonne of premium when the supply gets tight in Asian market. They are strongly seeking the higher premium when the buyers demand improves from other Asian countries than Japan.

Japanese buyers resisted the wide hike for the premium when the domestic demand is much lower than the peak despite of the recent recovery from the bottom. Japanese demand is relative firm for can material but the construction demand is still very slow. The negotiation continues in the week. They try to find the point of compromise.