
According to a recent report, the premium for aluminium shipments to Japanese buyers for January to March 2022 is agreed at $177 per tonne, down by 20 per cent from the previous quarter, in line with weaker domestic spot premiums and overseas prices. The news came after six sources directly involved in pricing talks reported this.

In the last quarter ended December 31, 2021, the premium was set at $220 per tonne increase by 19 per cent from $185 per tonne in the September quarter. That had marked a hike in the premium for the fifth consecutive quarter and the highest since the June quarter of 2015.
The decline in Q1 2022 premium has reportedly marked the first quarterly drop in six, even lower than the initial offers of $193-195 per tonne.
In November-end, a major aluminium manufacturer had offered Japanese customers a premium of $195 per tonne for January-March primary metal shipments. The figure was then down by 11 per cent from Q4.
Japan is Asia’s biggest importer of primary aluminium and the premiums are agreed for every quarter shipments over the benchmark of the London Metal Exchange (LME) cash price.
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