AA•Some Japanese aluminium buyers agreed to pay premiums of $255 per metric ton for October-December shipments, down 35% from $395 in the previous quarter.
The agreed premium is below producers’ initial offers of $310-$325 per ton and marks the first quarterly drop in four quarters. Japanese buyers pay the premium over the London Metal Exchange cash price, and their agreements serve as a regional benchmark.
A Japanese trading house source attributed the decline to recovering Middle Eastern production after Iranian attacks on Gulf smelters in March and rising shipments from Indonesia. Negotiations between Japanese buyers and global producers, including Rio Tinto and South32, began in late August; talks with other buyers and producers are ongoing.
