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.