Japan Primary Al Premium Hits First Rise in 4 Quarters

Japanese primary aluminium buyers are concluding negotiation with offshore suppliers to increase the Japan premium to US$ 75-78 per tonne level for July-September. The premium increases by around US$ 20 from April-June, which is the first rise in a year.

A part of the premium was settled at less than US$ 70 per tonne. However, the talk was heated up after UC RUSAL announced shipment termination for July-September. The buyers are accepting the higher premium while some of the buyers are still seeking lower premium. Some buyers could accept more than US$ 80 of premium when they try to secure additional volume, instead of metal from RUSAL.

The premium is expected to increase more in and after October-December. The premium for spot purchase apparently exceeded US$ 100 per tonne under supply concern including RUSAL’s termination.