11 DECEMBER 2013Platts
First settlement of Japan Q1 2014 aluminum premium at $255/mt plus LME
Edited by : AL CIRCLE
2 min read
A Japanese aluminum buyer and a global producer said Wednesday they have agreed to set the contract premium for the first quarter of 2014, at $255/mt plus London Metal Exchange cash, CIF Japan basis, up 3.8% from the current quarter.
The deal was for over 500 mt/month shipments of standard primary aluminum ingot -- meeting LME P1020A specifications -- to be delivered to the main Japanese ports of Yokohama, Nagoya or Osaka, over January-March 2014.
The parties involved in the deal did not want to be named.
Around 15 Japanese companies and four overseas suppliers are continuing with the negotiations, which started on November 22.
Russia's Rusal has offered at $270/mt plus LME cash, CIF Japan. Rio Tinto Alcan reportedly offered at $256/mt plus LME cash CIF Japan, and US' Alcoa at $255/mt plus LME cash CIF Japan.
This week, three producers were offering at $255/mt plus LME cash, CIF Japan, market sources said. They are aiming to strike deals before December 15, the deadline for January shipping procedures, they added.
Five or so other overseas sellers, who have not participated in the premium talks so far, are waiting for the first settlements, before kicking off negotiations with their Japanese buyers.
The producers have asked for a hike in Q1 premiums from the current quarter's $245-246/mt plus LME cash, CIF Japan, on the back of tightening supplies due to incremental demand from Turkey and other countries, sources said.
Two Japanese buyers said they have proposed to roll over the $245-246/mt premiums for Q4 as their Q1 bid levels, as they thought supplies were not tight in Asia.
The deal was for over 500 mt/month shipments of standard primary aluminum ingot -- meeting LME P1020A specifications -- to be delivered to the main Japanese ports of Yokohama, Nagoya or Osaka, over January-March 2014.
The parties involved in the deal did not want to be named.
Around 15 Japanese companies and four overseas suppliers are continuing with the negotiations, which started on November 22.
Russia's Rusal has offered at $270/mt plus LME cash, CIF Japan. Rio Tinto Alcan reportedly offered at $256/mt plus LME cash CIF Japan, and US' Alcoa at $255/mt plus LME cash CIF Japan.
This week, three producers were offering at $255/mt plus LME cash, CIF Japan, market sources said. They are aiming to strike deals before December 15, the deadline for January shipping procedures, they added.
Five or so other overseas sellers, who have not participated in the premium talks so far, are waiting for the first settlements, before kicking off negotiations with their Japanese buyers.
The producers have asked for a hike in Q1 premiums from the current quarter's $245-246/mt plus LME cash, CIF Japan, on the back of tightening supplies due to incremental demand from Turkey and other countries, sources said.
Two Japanese buyers said they have proposed to roll over the $245-246/mt premiums for Q4 as their Q1 bid levels, as they thought supplies were not tight in Asia.
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