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A global aluminium producer has offered Japanese buyers a USD 480 per tonne premium on primary aluminium shipments for the July-September quarter.
{alcircleadd}The proposed premium is around 36-37 per cent higher than the USD 350- USD 353 per tonne agreed for the April-June quarter.
Japan is Asia’s largest importer of aluminium, and the quarterly premium paid by Japanese buyers over the London Metal Exchange (LME) cash price serves as a benchmark for aluminium pricing across the region.
For the April-June quarter, Japanese buyers agreed to pay premiums of USD 350-353 per tonne, up 79-81 per cent from the previous quarter and the highest level in 11 years amid tightening supply conditions linked to the conflict in the Middle East.
Recent negotiations indicate that premiums could rise further in the third quarter. Market participants said major aluminium producers have already presented higher offers to Japanese buyers.
According to market reports, South32 has offered a premium of USD 480 per tonne for third-quarter shipments, while Rio Tinto has proposed USD 460 per tonne. Both offers are significantly above the second-quarter settlement level.
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The increase in premiums comes as global aluminium supply remains tight and spot availability continues to be constrained.
Higher benchmark premiums have also affected other Asian markets. In Thailand, traders have raised aluminium ingot offers, with CIF prices around USD 300-320 per tonne. However, buyers are only purchasing what they need right away, so prices are firm but trading remains slow.
South Korea has also seen more trading and higher prices, supported by rising premiums and tight supply. Market participants said low global inventories and a tight spot market have pushed up premium offers for the July-September quarter.
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