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Global aluminium producers seek Q1 Japan premiums of $230-$260, sources say
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Global aluminium producers seek Q1 Japan premiums of $230-$260, sources say
Nov 28, 2024 11:23 PM

TOKYO, Nov 29 (Reuters) - Global aluminium producers

have offered Japanese buyers premiums of $230-$260 per metric

ton for January-March primary metal shipments, up 31%-49% from

the current quarter, three sources directly involved in

quarterly pricing talks said on Friday.

Japan is a major Asian importer of the metal and the

premiums for primary metal shipments it agrees to pay each

quarter over the London Metal Exchange (LME) cash price

set the benchmark for the region.

For the October-December quarter, Japanese buyers agreed to

pay a premium of $175 per ton , up 1.7% from the

prior quarter.

One producer offered a premium of $230 per ton while another

supplier quoted $260 per ton this week, citing concerns over

tighter supply in Asia after China said it would cancel a 13%

export tax refund for aluminium semi-manufactured products.

To be implemented from Dec. 1, the move could drive up ingot

demand from Asian rolling mills outside of China to produce

semi-finished products, a source at a global producer said.

The higher offers also reflect rising spot premiums in

Japan, he said, where current spot prices are near $200 per ton.

"We were surprised by how strong the offers were, especially

the $260 price point," a source at a Japanese trading house

said.

Another source at a Japanese rolling mill described the

offers as too high, saying Japanese spot prices are in the

$180-$190 range amid sluggish domestic demand.

The sources declined to be identified given the sensitivity

of the discussions.

The quarterly pricing negotiations began this week between

Japanese buyers and global suppliers, including Rio Tinto

and South32 ( SHTLF ), and are expected to continue

until later next month.

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