24 JUNE 2013Reuters
Japan aluminium premiums set around $250/t in third quarter
Edited by : AL CIRCLE
2 min read
Japan’s term aluminium premiums for shipments between July and September were mostly set around $250 per ton, compared with $248 to $250 in the previous quarter, four sources directly involved in the talks said on Friday.
Japan is Asia’s biggest importer of aluminium and the premiums for its imports, agreed each quarter, set the benchmark for the region.
The moderate increase reflects a perception among suppliers that conditions have improved in Japan under Prime Minister Shinzo Abe’s $1.4-trillion stimulus program, but the final premium was down from initial requests for an increase to $252-$254 from producers.
Buyers were pushing hard to keep the premium in line with the April to June quarter as they do not believe that so-called Abenomics has stoked demand, sources said.
“Producers wanted to raise premiums even as little as $1 because they said Abenomics will help boost demand, but buyers don’t believe that is a good reason as demand has not picked up and inventories at Japanese ports are increasing,” said a source at a buyer.
A source at one of the suppliers said most deals were booked at $250 with some at $251. Some buyers are still holding out for a premium below $250, according to three sources.
Japan is Asia’s biggest importer of aluminium and the premiums for its imports, agreed each quarter, set the benchmark for the region.
The moderate increase reflects a perception among suppliers that conditions have improved in Japan under Prime Minister Shinzo Abe’s $1.4-trillion stimulus program, but the final premium was down from initial requests for an increase to $252-$254 from producers.
Buyers were pushing hard to keep the premium in line with the April to June quarter as they do not believe that so-called Abenomics has stoked demand, sources said.
“Producers wanted to raise premiums even as little as $1 because they said Abenomics will help boost demand, but buyers don’t believe that is a good reason as demand has not picked up and inventories at Japanese ports are increasing,” said a source at a buyer.
A source at one of the suppliers said most deals were booked at $250 with some at $251. Some buyers are still holding out for a premium below $250, according to three sources.
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