29 MAY 2013Reuters
Rio Tinto seeks premium from Japan on aluminium shipments
Edited by : AL CIRCLE
1 min read
Rio Tinto Alcan has written to Japanese buyers asking for a premium of $254 per tonne over the LME cash price for July-September primary aluminium shipments, a source involved in quarterly pricing talks said on Tuesday.
That compares with average premiums of $248 to $250 a tonne in the previous quarter, when Rio initially asked for a premium of $255.
Japan is Asia's biggest importer of aluminium and the premiums for its imports, agreed in talks with producers each quarter, set the benchmark for the region.
Rio's offer was based on expectations for higher product exports from Japan as the economic policies of Prime Minister Shinzo Abe have helped lower the yen, the source said.
It is not yet clear if there is an actual rise in demand in Japan for aluminium, the source added.
"Demand in South East Asia has been quite good, but I don't think there is that much of an improvement in Japan," said one Hong Kong-based trader.
That compares with average premiums of $248 to $250 a tonne in the previous quarter, when Rio initially asked for a premium of $255.
Japan is Asia's biggest importer of aluminium and the premiums for its imports, agreed in talks with producers each quarter, set the benchmark for the region.
Rio's offer was based on expectations for higher product exports from Japan as the economic policies of Prime Minister Shinzo Abe have helped lower the yen, the source said.
It is not yet clear if there is an actual rise in demand in Japan for aluminium, the source added.
"Demand in South East Asia has been quite good, but I don't think there is that much of an improvement in Japan," said one Hong Kong-based trader.
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