Japan Primary Aluminium Ingot Premium Drops to US$ 75-77/t in Oct-Dec

Japanese primary aluminium ingot buyers concluded the negotiation with offshore suppliers to reduce the premium for ingot CIF Japan by around US$ 12 to US$ 75-77 per tonne for October-December shipment from US$ 87-89 in July-September. The premium will drop for the first time in 5 quarters due to slower economy worldwide. The suppliers offered US$ 80 per tonne of premium for Japanese buyers. But they reduced the indication under slow demand. The buyers sought major drop when they are suffered from very slow building demand along with slow economy in USA, Europe and Asia. The buyers sought less than US$ 75 per tonne level but finally agreed with the suppliers. Japanese interests expect the premium could keep decreasing in and after January-March 2009 due to slow demand condition worldwide. Japanese trading firms, however, the premium could keep high when the strong suppliers could keep the price level despite of the imbalance of the supply.