Aluminium giant seeks 14% premium hike in Q2, a surging trend set owing to trade and supply concerns
A leading global aluminium manufacturing giant has recently sought a premium of USD 260 per tonne from Japanese buyers for April-June (Q2) primary metal shipments, which is a notable 14 per cent increase from the current quarter (Q1, 2025). This development is nothing but a ripple effect of the persistent volatility in the primary metals market, a simultaneous event along with geopolitical tensions and production constraints continuing to reshape global supply chains.
Japan, a major importer of aluminium in Asia, plays a pivotal role in regional price formation. The premiums for primary metal shipments are determined quarterly over the London Metal Exchange cash price (CMAL0), a benchmark that reflects prevailing market conditions.
Japanese buyers had agreed to a premium of USD 228 per tonne in the preceding January-March quarter, the highest in nearly a decade and up 30 per cent from the previous quarter. This marked escalation has been attributed to several converging factors.
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