Japan Q2 aluminum premiums to LME mostly at $115-122/mt; talks continue

Premiums for primary aluminum exported to Japan in the second quarter have settled mostly at $115-122/mt to London Metal Exchange cash CIF Japan, while talks involving two major overseas producers continue, sources said Thursday.

Japanese buyers and overseas supplier sources said they have agreed to set the Q2 premiums at $115/mt, $117/mt, $120/mt, $121/mt and $122/mt to LME cash of the loading month, on a of CIF main Japanese ports basis. The premiums were for 500-5,000 mt/month shipments of ingots.

In addition, a deal at $127/mt plus LME cash CIF Japan was confirmed for less than 500 mt/month of ingot.

Separately, a Q2 deal for a $132/mt premium to LME cash plus $180-200/mt processing fee, CIF Japan was heard in the market for over 500 mt/month of slab and billets. Platts has not been able to confirm the details

Meanwhile, market sources said negotiations with Rio Tinto Alcan, that has offered at a premium of $132/mt to LME cash CIF Japan, may continue into next week as buyers aim for lower premiums.

Talks with another overseas supplier, who is said to have offered above a $130/mt premium to LME cash CIF Japan, are progressing slowly too, sources added.

One another producer is likely to wait until Rio Tinto Alcan and buyers agree on the premiums, sources said.

Meanwhile, spot premiums stayed at $122-127/mt to LME cash CIF Japan Thursday, unchanged from Wednesday.

An overseas supplier source said his company plans to offer spot cargoes to Japanese with a premium in the $120s, but has not closed any deals yet.