Some Japanese aluminium buyers agree to Q4 premiums of $255/T, 35% lower than Q3
RIO•Some Japanese aluminium buyers agreed to pay $255 per metric ton in premiums for October-December shipments, 35% less than the $395 paid in the previous quarter and below producers’ initial offers of $310-$325.
1. Premiums fall
The agreed premium marks the first quarterly drop in four quarters. Japan’s quarterly premiums over the London Metal Exchange cash price serve as a regional benchmark for primary aluminium shipments.
2. Supply recovers
A source at a Japanese trading house said the decline reflects a recovery in Middle Eastern production after attacks on Gulf smelters in March and rising shipments from Indonesia. Emirates Global Aluminium said its Al Taweelah smelter was operating at 18% of capacity in August and was expected to return to prior output levels in early 2027; Aluminium Bahrain was producing at around 80% of pre-war levels last month, its CEO said. Negotiations between Japanese buyers and producers, including Rio Tinto and South32, began in late August, while talks with other buyers and producers continue.
