
According to our report, two industry associates directly involved in pricing discussions stated that a premium of $99 a tonne had been agreed between Japanese aluminium buyers and at least two global producers for October-December shipments, a decrease of 33% from a year ago.

This is a decrease from $148 a tonne paid in the July-September quarter and marked the fourth consecutive quarterly drop. The price is also lower than the producers' initial offers of $115-$133.
Among Asia's top metal importers, Japan is defined by the premium PREM-ALUM-JP negotiates each quarter over the benchmark London Metal Exchange (LME) metal price CMAL0.
The aluminium industry in Japan is a complete processing business with the exclusion of smelting. Therefore value addition is less. However, with the rapid fall in the price of aluminium, technical development for cost reduction is crucial.
According to the World Bureau of Metal Statistics, Japan produced around 786.6 thousand tonnes of secondary aluminium in 2021, increasing by roughly 96.4 thousand tonnes compared to the previous year. Secondary aluminium is the product of recycling aluminium scrap, which is very much applied to the automotive and motorcycle industry.
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