Asian aluminium premium slips to $202/t as MJP Q4 offers fall to $245–260

Asian aluminium premiums are facing more pressure ahead of Q4 talks. CRU’s Asia CIF aluminium premium is now USD 202 per tonne, well below the USD 395 per tonne Main Japanese Port (MJP) Q3 benchmark.

MJP Q4 offers have also dropped sharply. They fell from USD 325 per tonne in early September to USD 245–260 per tonne as the new quarter approaches. This shows weaker sentiment in the market.

Aluminium premiums are under pressure across Asia, especially in Korea, Malaysia and Taiwan. These markets are more exposed to spot price changes, so premiums can move quickly when supply or demand changes.

Explore the production, demand and consumption forecasts of bauxite and alumina in our report: "Global Bauxite & Alumina Market Forecast to 2036: Supply–Demand, Trade Flows & Price Outlook"

Premiums in Vietnam and Thailand have held up better. Both markets rely more on imported aluminium. Inventories are also rising across the region as demand remains weak and buyers stay cautious.

Global trade flows add uncertainty

The tension in the Middle East has reduced aluminium flows from East to West. This has tightened an important trade route for aluminium.

The breakdown of recent US-Canada trade talks has added to the uncertainty. The talks had raised hopes that Canada’s aluminium tariff could fall from 50 per cent to 25 per cent. The tariff, however, remains at 50 per cent.

Looking for unwrought aluminium business opportunities? Explore potential leads of primary aluminium on AL Biz.

European prices remain more attractive for some producers, but traders are reluctant to hold aluminium on long shipping routes. Sentiment in Europe remains firmer, while Asian premiums continue to fall.

More aluminium capacity is also expected to come into operation in 2027, with much of the new capacity expected to be in Asia.