01 NOVEMBER 2013Platts
Japan's spot aluminum premium not affected by Saudi Ma'aden smelter halt
Edited by : AL CIRCLE
2 min read
Spot premiums for primary aluminum imported into Japan are not affected by Saudi Arabia's Ma'aden smelter closing one potline, but buyers expressed concern Wednesday that the contract premiums for the first quarter of 2014 may be impacted.
On October 16, operator Alcoa said the 740,000 mt/year Ma'aden smelter had shut one of two potlines due to pot instability. The potline is expected to be back online between Q1 and Q2 of 2014, according to Alcoa.
The smelter was brought on stream in December last year.
Japan imported 35,307 mt of aluminum from Saudi Arabia over March-September 2013. The first shipment from Ma'aden arrived in March.
Japanese trade and consumer sources said most of the 35,307 mt imported, handled by about three trading firms, were not for direct sales to end-users as the Ma'aden brand is not registered on the London Metal Exchange as yet.
"I have seen Ma'aden supplies sitting at one of the main port warehouse untouched for a long time, so I assume these were not tied to end-user sales, but for emergency sales," said one Japanese trader.
Platts assessed the Japanese spot import premium at $245-246/mt plus LME cash CIF Japan, unmoved since September 25 due to the absence of offers, bids or deals.
But market sources said the Ma'aden potline halt may impact premiums for Q1 2014 as some end-users were considering securing supplies from Ma'aden on a long-term basis from 2014.
On October 16, operator Alcoa said the 740,000 mt/year Ma'aden smelter had shut one of two potlines due to pot instability. The potline is expected to be back online between Q1 and Q2 of 2014, according to Alcoa.
The smelter was brought on stream in December last year.
Japan imported 35,307 mt of aluminum from Saudi Arabia over March-September 2013. The first shipment from Ma'aden arrived in March.
Japanese trade and consumer sources said most of the 35,307 mt imported, handled by about three trading firms, were not for direct sales to end-users as the Ma'aden brand is not registered on the London Metal Exchange as yet.
"I have seen Ma'aden supplies sitting at one of the main port warehouse untouched for a long time, so I assume these were not tied to end-user sales, but for emergency sales," said one Japanese trader.
Platts assessed the Japanese spot import premium at $245-246/mt plus LME cash CIF Japan, unmoved since September 25 due to the absence of offers, bids or deals.
But market sources said the Ma'aden potline halt may impact premiums for Q1 2014 as some end-users were considering securing supplies from Ma'aden on a long-term basis from 2014.
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