Bloomberg
Aluminum Costs to Japan Said to Gain to One-Year High on Post-Quake Demand
Edited by : AL CIRCLE
2 min read
Aluminum buyers in Japan, Asia’s largest importer, agreed to a 6 percent gain in premiums charged by suppliers to the highest level in a year as the nation rebuilds from a record earthquake, boosting consumption.
Premiums for the three months ending Sept. 30 were set at $120 a metric ton over the London Metal Exchange cash price in transactions agreed so far, compared with $113 this quarter, said three executives involved in the negotiations. They declined to be identified because the talks were private.
The fee increased after premiums paid by buyers in North America climbed to a record, making it viable for producers to shift the metal away from Asia. Premiums in the U.S. surged to a record last month at 9 cents a pound ($198 a ton), driven by a delay in moving stockpiles out of warehouses, and those in Europe are close to the highest ever, at $215 a ton duty-paid basis in Rotterdam, according to London-based researcher CRU. The gain in premiums may boost costs for fabricators such as Furukawa-Sky Aluminum Corp. (5741) and Sumitomo Light Metal Industries Ltd. (5738), Japan’s two biggest mills.
“The negative influence from the disaster on aluminum demand is beginning to fade,” said Tomomichi Akuta, research analyst at Mitsubishi UFJ Research & Consulting Co. in Tokyo. “Consumption in Japan will likely pick up this month.”
Inventories of the metal monitored by the LME surged to 4.7 million tons in May, about a quarter of which is stored in Detroit, the U.S. city associated with the automotive industry.
Premiums for the three months ending Sept. 30 were set at $120 a metric ton over the London Metal Exchange cash price in transactions agreed so far, compared with $113 this quarter, said three executives involved in the negotiations. They declined to be identified because the talks were private.
The fee increased after premiums paid by buyers in North America climbed to a record, making it viable for producers to shift the metal away from Asia. Premiums in the U.S. surged to a record last month at 9 cents a pound ($198 a ton), driven by a delay in moving stockpiles out of warehouses, and those in Europe are close to the highest ever, at $215 a ton duty-paid basis in Rotterdam, according to London-based researcher CRU. The gain in premiums may boost costs for fabricators such as Furukawa-Sky Aluminum Corp. (5741) and Sumitomo Light Metal Industries Ltd. (5738), Japan’s two biggest mills.
“The negative influence from the disaster on aluminum demand is beginning to fade,” said Tomomichi Akuta, research analyst at Mitsubishi UFJ Research & Consulting Co. in Tokyo. “Consumption in Japan will likely pick up this month.”
Inventories of the metal monitored by the LME surged to 4.7 million tons in May, about a quarter of which is stored in Detroit, the U.S. city associated with the automotive industry.
Previous article
New Alumina Index Pricing Winning Over Opponents-Aluminum Producers
Next articleRio Alcan still cautious on aluminum outlook
Grow with
AL Circle
