Platts
Japan premium for imported aluminum rises to $130-135/mt plus LME cash
Edited by : AL CIRCLE
2 min read
Spot premium for imported primary aluminum ingot has risen to $130-135/mt plus London Metal Exchange cash CIF Japan Monday, the first change since March 14 when it stood at $122-127/mt, according to Platts data.
No spot deal has been reported since contract negotiations for the second quarter ended in the week ending March 24.
An overseas supplier offered $135/mt plus LME cash CIF Japan for ingot, but no buyer was said to have accepted.
Japanese market participants said deals below $130/mt were unlikely as three major producers are not offering any spot cargoes for the next two months having already sold all their output for Q2.
Meanwhile, spot buying interest remains thin in Japan. Two overseas supplier sources reported buying interest for 200-300 mt cargoes from Indonesia, Malaysia, South Korea and Thailand, but none from Japan. This is probably because of inventories were high, Japanese consumer and trade sources said.
Japan's aluminum stocks at three main ports stood at 247,100 mt at the end of March, consumer and trader sources said. Stocks have fallen from 264,500-266,600 mt at the end of February, but are still above 213,200-219,000 mt seen a year ago.
But two Japanese market sources said the stocks could fall ahead of the peak demand season that runs from April to July.
"Japan has sufficient supply thanks to long-term contracts, but supply is tight outside Japan. I hear premiums above $150/mt for spot shipments to Southeast Asia," a Japanese consumer source said.
"Consumers in Southeast Asia are reaching out to Japan for spot cargoes as supply is tight, they cannot find sellers ... There is no reason for overseas suppliers to sell to Japan at low premiums," a Japanese trader said.
No spot deal has been reported since contract negotiations for the second quarter ended in the week ending March 24.
An overseas supplier offered $135/mt plus LME cash CIF Japan for ingot, but no buyer was said to have accepted.
Japanese market participants said deals below $130/mt were unlikely as three major producers are not offering any spot cargoes for the next two months having already sold all their output for Q2.
Meanwhile, spot buying interest remains thin in Japan. Two overseas supplier sources reported buying interest for 200-300 mt cargoes from Indonesia, Malaysia, South Korea and Thailand, but none from Japan. This is probably because of inventories were high, Japanese consumer and trade sources said.
Japan's aluminum stocks at three main ports stood at 247,100 mt at the end of March, consumer and trader sources said. Stocks have fallen from 264,500-266,600 mt at the end of February, but are still above 213,200-219,000 mt seen a year ago.
But two Japanese market sources said the stocks could fall ahead of the peak demand season that runs from April to July.
"Japan has sufficient supply thanks to long-term contracts, but supply is tight outside Japan. I hear premiums above $150/mt for spot shipments to Southeast Asia," a Japanese consumer source said.
"Consumers in Southeast Asia are reaching out to Japan for spot cargoes as supply is tight, they cannot find sellers ... There is no reason for overseas suppliers to sell to Japan at low premiums," a Japanese trader said.
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