Japan Q4 aluminium premiums fall 35% as Middle Eastern supplies recover
XLB•XLB•XLB•XLB•Premiums for aluminium shipments to Japan in October-December were set at $255 per metric ton, down 35% from $395 in the previous quarter. The decline reflected recovering Middle Eastern supplies and increased shipments from Indonesia, while demand remained robust, sources said.
Japanese buyers agreed to pay a fourth-quarter premium of $255 per metric ton over the London Metal Exchange cash price, below producers’ initial offers of $310-$325. It was the first quarterly decline in four quarters.
A buyer said Middle Eastern production was recovering after March attacks on Gulf smelters, with increasing supplies from Indonesia. Japan’s aluminium ingot and alloy imports from the Middle East fell sharply in April-June, but the year-on-year decline narrowed from July; stocks at the country’s three major ports rose 22.7% from July to 246,600 tons at the end of August, below the 300,000 tons generally considered adequate.
