
According to a latest Reuters update, a major international aluminium producer has offered buyers from Japan a premium of US $82 per tonne for primary metal scheduled for October-December shipment. The premium amount is lower by 9-12 per cent from the last quarter, reported sources involved in market pricing.
Japan is presently the biggest importer of aluminium in Asia and the premiums it agrees to pay for primary aluminium shipments for each quarter over the cash price settled at the London Metal Exchange (LME) set the benchmark for the region.
According to the report, Japanese buyers agreed to pay a premium of $90-93 PREM-ALUM-JP, for the July-September quarter. The premium, down by 19-23 per cent from the last quarter, has been weighed on by weaker premiums in spot market.
The latest pricing negotiations for the next quarter began this week. Parties involved include the Japanese buyers and global mining companies namely Rio Tinto Ltd, Alcoa Inc and South32 Ltd. The negotiations over primary aluminium shipment premiums are expected to be settled not before next month.
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