Japan’s spot aluminium premiums steady at $80-$90/mt in thin trading

Japan’s spot aluminium premiums are steady at $80-$90/mt in thin trading. Platts assessed spot aluminium premiums for imports into Japan at $80-$90/mt plus LME cash CIF Japan Monday, unchanged from May 30 in thin trading against the backdrop of third-quarter contract premium negotiations.

An international trader said he has indicated an interest to sell at $80/mt plus LME cash CIF Japan over a week earlier, but prospective buyers have not responded.

One Japanese trader said he was interested.

A Japanese consumer added that he was approached by several traders if he would be interested in metal sourced from international traders and financial institutions at $80-$90/mt plus LME cash CIF Japan. He declined the offers. “This is not the time to buy. We already bought some spot material locally,” he said.

Market sources said there seems to be two international traders and two financial institutions seeking to sell on both a spot and term basis.

“One seller suggested there were thousands of tons he could supply at once, several ten thousand tons over all,” said a second Japanese consumer, adding that the offer was for Australian, South African or Middle Eastern origins.

If Japanese buyers express interest in these offers, spot premiums may rise, said a second Japanese trader.

“There is no reason why you should buy from the same certain people. If trades are done in spot, market will go up. There is no reason for sellers to keep on selling at low premiums, if they see more demand,” he said.

Prospective Japanese buyers have not been responsive to spot offers because they wanted to develop an outlook for the Q3 premium negotiation results first, a third Japanese trader said. The Q3 talks that started three weeks earlier, have stalled with producers offering $100-$110/mt plus LME cash CIF Japan, while two Japanese buyers placed counter-bids at $90/mt plus LME cash CIF Japan, sources said.

Q2 premiums were $115-$117/mt plus LME cash CIF Japan.