03 DECEMBER 2013Steelguru.com
Japan producers seek up to USD 256 per tonne aluminum premium
Edited by : AL CIRCLE
2 min read
Reuters reported that some big aluminum firms have offered Japanese buyers a premium of USD 255 per tonne to USD 256 per tonne for January to March shipments, below the offer from top producer United Company Rusal last week but still around a record high.
Sources said that Japan is Asia's biggest importer of the metal and the premiums for primary metal shipments it agrees to pay each quarter over the London Metal Exchange cash price set the benchmark for the region.
The latest quarterly pricing negotiations began late last week between Japanese buyers and miners including Rusal, Rio Tinto Limited, Alcoa Inc and BHP Billiton. They are expected to continue into next month.
Rusal said last week it had offered January-March shipments of the metal to Japanese buyers at a premium of USD 270 per tonne. Another big producer offered USD 256 per tonne this week while another major producer proposed USD 255 per tonne.
The offers made this week are about 3% to 5% higher than the premiums paid by Japanese firms in the October to December quarter at USD 245 per tonne to USD 247 per tonne over the LME cash price. Rusal's offer represents an increase of about 10%.
If accepted, these offers would match or exceed the record USD 254 tonne to USD 255 a tonne for the October-December quarter of 2012 when industrial consumers competed with investment demand for the metal as bottlenecks at warehouses monitored by the LME led to long queues for delivery
Sources said that Japan is Asia's biggest importer of the metal and the premiums for primary metal shipments it agrees to pay each quarter over the London Metal Exchange cash price set the benchmark for the region.
The latest quarterly pricing negotiations began late last week between Japanese buyers and miners including Rusal, Rio Tinto Limited, Alcoa Inc and BHP Billiton. They are expected to continue into next month.
Rusal said last week it had offered January-March shipments of the metal to Japanese buyers at a premium of USD 270 per tonne. Another big producer offered USD 256 per tonne this week while another major producer proposed USD 255 per tonne.
The offers made this week are about 3% to 5% higher than the premiums paid by Japanese firms in the October to December quarter at USD 245 per tonne to USD 247 per tonne over the LME cash price. Rusal's offer represents an increase of about 10%.
If accepted, these offers would match or exceed the record USD 254 tonne to USD 255 a tonne for the October-December quarter of 2012 when industrial consumers competed with investment demand for the metal as bottlenecks at warehouses monitored by the LME led to long queues for delivery
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