Platts
Japan's third quarter aluminum premium settled at $200-210/mt
Edited by : AL CIRCLE
2 min read
Premiums for imported primary aluminum products in the third quarter have settled at $200-210/mt plus LME cash CIF Japan last week, four Japanese market participants involved in the negotiations said Monday.
One deal for over 500 mt/month of minimum 99.7%-grade primary aluminum ingot was confirmed at $200/mt plus LME cash CIF main Japanese ports for July-September, and another in the range of $201-210/mt, also for over 500 mt/month of ingot over July-September. The four market participants included two buyers and two sellers.
Meanwhile, one Japanese buyer of billet/slab/alloy products is said to have agreed on a premium of $200/mt plus LME cash CIF, also for July-September, but other details of the deal could not be confirmed.
Billet/slab/alloy product prices are typically based on a formula consisting of LME cash price, processing fee of around $150-200/mt for converting standard aluminum into billet/slab/alloys, and the standard aluminum ingot market premium, which is negotiated every quarter. The quarterly negotiations involve more than 15 Japanese buyers, consisting of trading houses and end-users, and 8-10 overseas sellers including producers and traders. Japan imports 30,000-50,000 mt/month of primary aluminum products on long-term contracts.
The negotiations are ongoing, as some overseas producers have not made any Q3 offers to Japanese buyers yet, sources said. One producer has offered a premium of $200/mt and that from other overseas sellers fall between $200/mt and $215/mt, they added.
The term premiums for Q2 were $115-127/mt plus LME cash CIF Japan, according to Platts data.
One deal for over 500 mt/month of minimum 99.7%-grade primary aluminum ingot was confirmed at $200/mt plus LME cash CIF main Japanese ports for July-September, and another in the range of $201-210/mt, also for over 500 mt/month of ingot over July-September. The four market participants included two buyers and two sellers.
Meanwhile, one Japanese buyer of billet/slab/alloy products is said to have agreed on a premium of $200/mt plus LME cash CIF, also for July-September, but other details of the deal could not be confirmed.
Billet/slab/alloy product prices are typically based on a formula consisting of LME cash price, processing fee of around $150-200/mt for converting standard aluminum into billet/slab/alloys, and the standard aluminum ingot market premium, which is negotiated every quarter. The quarterly negotiations involve more than 15 Japanese buyers, consisting of trading houses and end-users, and 8-10 overseas sellers including producers and traders. Japan imports 30,000-50,000 mt/month of primary aluminum products on long-term contracts.
The negotiations are ongoing, as some overseas producers have not made any Q3 offers to Japanese buyers yet, sources said. One producer has offered a premium of $200/mt and that from other overseas sellers fall between $200/mt and $215/mt, they added.
The term premiums for Q2 were $115-127/mt plus LME cash CIF Japan, according to Platts data.
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