04 DECEMBER 2013Platts
Japan Q1 aluminum premium bid-ask levels narrow in 3rd week of talks
Edited by : AL CIRCLE
2 min read
Buyers and sellers involved in the negotiations for Japanese aluminum import contracts for the first quarter of 2014 are moving closer in their premium ideas, sources said Wednesday.
One Japanese trader said he had bid $249/mt plus London Metal Exchange cash CIF Japan to overseas producers who have offered $255-256/mt and $270/mt plus LME cash CIF Japan.
The bids were for premiums over the LME cash prices for P1020A 99.7%-grade primary aluminum ingot, sows and T-bars to be exported to main Japanese ports. The negotiations are in the third week now.
Two Japanese consumers said they had proposed rollover of Q4 2013 premiums of $245-246/mt plus LME cash CIF to Q1 2014.
One producer source said he was seeing settlements in the range of $253-255/mt plus LME cash CIF, but has not closed any term deal as yet.
"I told sellers [offering $255-256/mt plus LME cash CIF] that I would be happy to sell my current inventories at $253/mt," said one consumer.
A second producer has reportedly told Japanese buyers his company and one Japanese buyer had agreed to set the Q1 premium at $255/mt plus LME cash CIF Japan. The deal could not be confirmed, however.
"The $255/mt settlement is a suitable level. I know one consumer who would not mind the rising premiums as the LME prices have fallen [this week]," said one Japanese trader, adding that he could not confirm the deals as he was still in negotiation.
Rusal was said to have offered $270/mt plus LME cash CIF Japan for Q1, and Alcoa $255/mt on November 22. Rio Tinto Alcan was said to have offered $256/mt on November 25. Other producers in the Middle East, Australia and South Africa have not made any firm offers but some were said to be talking of supply tightness.
One Japanese trader said he had bid $249/mt plus London Metal Exchange cash CIF Japan to overseas producers who have offered $255-256/mt and $270/mt plus LME cash CIF Japan.
The bids were for premiums over the LME cash prices for P1020A 99.7%-grade primary aluminum ingot, sows and T-bars to be exported to main Japanese ports. The negotiations are in the third week now.
Two Japanese consumers said they had proposed rollover of Q4 2013 premiums of $245-246/mt plus LME cash CIF to Q1 2014.
One producer source said he was seeing settlements in the range of $253-255/mt plus LME cash CIF, but has not closed any term deal as yet.
"I told sellers [offering $255-256/mt plus LME cash CIF] that I would be happy to sell my current inventories at $253/mt," said one consumer.
A second producer has reportedly told Japanese buyers his company and one Japanese buyer had agreed to set the Q1 premium at $255/mt plus LME cash CIF Japan. The deal could not be confirmed, however.
"The $255/mt settlement is a suitable level. I know one consumer who would not mind the rising premiums as the LME prices have fallen [this week]," said one Japanese trader, adding that he could not confirm the deals as he was still in negotiation.
Rusal was said to have offered $270/mt plus LME cash CIF Japan for Q1, and Alcoa $255/mt on November 22. Rio Tinto Alcan was said to have offered $256/mt on November 25. Other producers in the Middle East, Australia and South Africa have not made any firm offers but some were said to be talking of supply tightness.
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