TOKYO, July 1 Japan's aluminium premiums for
July-September shipments were mostly set at a record high
$400-$408 per tonne, up 8-12 percent from the previous quarter,
on higher overseas rates and solid local demand, sources
directly involved in the talks said.
Japan is Asia's biggest importer of the metal and the
premiums for primary metal shipments it agrees to pay suppliers
each quarter over the London Metal Exchange (LME) cash price
set the benchmark for the region.
An end-user source said most deals were done at $405-$408,
while another end-user source said most deals were booked at
A source at one of the producers said most shipments were
booked at $407-408, with some deals done at $410, while another
producer source said most deals were agreed near $405.
Negotiations are still continuing between some suppliers and
This was higher than the premium of $365-$370 per tonne
PREM-ALUM-JP paid in the April-June quarter.
The latest quarterly pricing negotiations began in May
between Japanese buyers and aluminium suppliers including Rio
Tinto Ltd , Alcoa Inc, BHP Billiton
and United Company Rusal Plc.
The surging aluminium premiums in Japan follow an increase
in spot premiums in Europe and high rates in the United States
as the metal continues to be used as collateral for financing
deals, making it unavailable to the market.
Healthy demand for aluminium by Japanese fabricators is also
behind the higher premiums, producer sources said.
Japan's demand for aluminium rolled products is expected to
rise 0.6 percent this business year to March 2015 from a year
earlier to 2 million tonnes on robust export demand to China and
Southeast Asia, the Japan Aluminium Association said in March.
(Reporting by Yuka Obayashi; Editing by Muralikumar