Japan’s aluminium premium for Q3 Drops to $108/t as weak demand and high stocks tip balance

Some Japanese aluminium buyers have settled third-quarter premiums at USD 108 per tonne, down sharply from USD 182 per tonne in the second quarter, in a deal that reflects muted domestic demand, rising port inventories, and broader market oversupply, according to sources directly involved in the negotiations.
The 41 per cent quarter-on-quarter decline is the second consecutive drop and the lowest quarterly premium since early 2024, underscoring Japan’s ongoing demand uncertainty across major end-use segments like transportation, construction, and packaging.
Buyers gain upper hand as spot deals undercut producers’ offers
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