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Producers seek Q3 aluminium premiums of $100-110/T from Japan buyers

Published 07/06/2016, 05:29 pm
Updated 07/06/2016, 05:30 pm
© Reuters.  Producers seek Q3 aluminium premiums of $100-110/T from Japan buyers
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TOKYO, June 7 (Reuters) - Top aluminium producers have offered Japanese buyers premiums of $100-110 per tonne for July-September primary metal shipments, down 4-15 percent from the previous quarter, three sources directly involved in pricing talks said on Tuesday.

Japan is Asia's biggest importer of aluminium and the premiums it agrees to pay each quarter over the London Metal Exchange (LME) cash price CMAL0 set the benchmark for regional primary metal shipments.

For the April-June quarter, Japanese buyers agreed to pay producers a premium of $115-$117 per tonne PREM-ALUM-JP , up about 5-6 percent from the prior quarter, due to lower local inventories. late May, a major aluminium producer offered Japanese buyers a premium of $110 per tonne for July-September shipments, down 4-6 percent from the previous quarter, according to sources. the first offer, another major supplier also offered $110 per tonne, while another smelter asked for $100 per tonne," a trader source said.

"But we've seen an offer of spot premium of a little above $90 per tonne a few weeks ago. Given the lower spot levels, buyers will likely seek double-digit figures," he said.

The latest quarterly pricing negotiations began in late May between Japanese buyers and miners including Rio Tinto Ltd RIO.AX RIO.L , Alcoa Inc (NYSE:AA) AA.N and South32 Ltd S32.AX .

The talks are expected to continue until later this month.

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