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Japan's spot aluminum premium rises 13% to LME plus $150/mt CIF on restocking
Edited by : AL CIRCLE
2 min read
Spot premiums for aluminum imported into Japan have gone up to $150/mt plus London Metal Exchange cash CIF Japan basis Tuesday, from plus $130-135/mt on Monday, as traders restocked ahead of the demand season, sources said.
A deal for more than 500 mt of primary aluminum ingot to be shipped over May-June closed at $150/mt plus LME cash CIF main Japanese port basis, between two international trading houses, said sources familiar with the matter.
The spot cargo is believed to have been re-sold to a third trader who needs to meet his domestic delivery requirement for the current quarter, sources said. The third trader has confirmed the purchase.
Japanese buyers said offers this week from overseas trading houses were higher. One seller had offered at $165/mt plus LME cash CIF Japan for over 200 mt delivery over May-June, and another at $180/mt plus LME cash CIF Japan for more than 1,000 mt of product, delivery possibly over May-June.
"The [price of] $180/mt [plus LME cash CIF Japan] is exactly the cost of bringing LME warehouse material into Japan," said one Japanese buyer. Aluminum stocks at the LME warehouses stood at 5,045,275 mt Monday.
Meanwhile, three overseas suppliers -- two producer sources and one international trader -- were pegging their spot premiums around $135-150/mt plus LME cash CIF Japan. One source, who received spot inquiries, said premiums were seen to be below $150/mt as he was not aware of any spot deals into Japan at premiums at that level.
Another source said last week, he had received inquiries from several Japanese trading houses for cargoes of 200-300 mt to be shipped in May-June, but had not closed any deals yet. Premiums of $150/mt and $180/mt were "too high," he said, adding those could be "offers for the London Metal Exchange warehouse cargoes."
Separately, sources at two global producers said premiums were definitely on an uptrend as some Asian term buyers were looking to set the third quarter premiums this month, fearing a further premium rise.
The negotiations for the third quarter premiums typically start on the fourth week of May, around six weeks before the new quarter.
A deal for more than 500 mt of primary aluminum ingot to be shipped over May-June closed at $150/mt plus LME cash CIF main Japanese port basis, between two international trading houses, said sources familiar with the matter.
The spot cargo is believed to have been re-sold to a third trader who needs to meet his domestic delivery requirement for the current quarter, sources said. The third trader has confirmed the purchase.
Japanese buyers said offers this week from overseas trading houses were higher. One seller had offered at $165/mt plus LME cash CIF Japan for over 200 mt delivery over May-June, and another at $180/mt plus LME cash CIF Japan for more than 1,000 mt of product, delivery possibly over May-June.
"The [price of] $180/mt [plus LME cash CIF Japan] is exactly the cost of bringing LME warehouse material into Japan," said one Japanese buyer. Aluminum stocks at the LME warehouses stood at 5,045,275 mt Monday.
Meanwhile, three overseas suppliers -- two producer sources and one international trader -- were pegging their spot premiums around $135-150/mt plus LME cash CIF Japan. One source, who received spot inquiries, said premiums were seen to be below $150/mt as he was not aware of any spot deals into Japan at premiums at that level.
Another source said last week, he had received inquiries from several Japanese trading houses for cargoes of 200-300 mt to be shipped in May-June, but had not closed any deals yet. Premiums of $150/mt and $180/mt were "too high," he said, adding those could be "offers for the London Metal Exchange warehouse cargoes."
Separately, sources at two global producers said premiums were definitely on an uptrend as some Asian term buyers were looking to set the third quarter premiums this month, fearing a further premium rise.
The negotiations for the third quarter premiums typically start on the fourth week of May, around six weeks before the new quarter.
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