Help Desk -
9717405332, 9599714297, 9810335381
Email
Password

Japanese aluminium buyers agree Q2 premium at USD 105 per tonne - Report

Metal News - Published on Thu, 14 Mar 2019

Image Source: IndiaMART
Reuters quoted four sources directly involved in the pricing talks as saying that some Japanese aluminium buyers have agreed to pay a premium of USD 105 per tonne for shipments in April to June, reflecting higher local spot premiums. It is the first increase in three quarters and puts the premium at 24 percent to 27 percent above the USD 83 to USD 85 per tonne paid this quarter. Producers had originally sought USD 109 to USD 112 per tonne. Japan is Asia's biggest importer of aluminium and the premiums for primary metal shipments it agrees to pay each quarter over the benchmark London Metal Exchange cash price set the benchmark for the region.

A source at an end-user said that "We have settled with two global producers at USD 105 per tonne last week, saying that lower export from China of semi-fabricated metal which can be melted down for use as primary metal was behind a tighter market in Asia.”

China's aluminium exports fell to 343,000 tonnes in February, down a whopping 37.9 percent from January's record high of 552,000 tonnes. A source at a trading house also said his company has signed term contracts with three producers at USD 105 per tonne.

He added that "Many Japanese trading companies have trimmed inventories ahead of the end of their financial year on March 31, which helped tighten local supply and bolster spot premiums.”

Source :

Posted By : Sanju Moirangthem on Thu, 14 Mar 2019
Related News from Metal segment