First Third-Quarter Aluminium Buy in Japan Set At US$119/MT Plus LME Cash CIF Japan

First Third-Quarter Aluminium Buy in Japan Set At US$119/MT Plus LME Cash CIF Japan

According to a report from Japan, buyers there settled on next quarter’s premium for imported aluminium.

An unnamed buyer and an unnamed seller settled on a third-quarter price of $119 per metric ton plus LME cash CIF (cost, insurance, and freight) Japan on Monday. The deal involved shipping over 500 metric tons per month of P1020/P1020A aluminum ingot each of the quarter’s three months.

Sources say that over a dozen buyers in Japan and five sellers are continuing negotiations over prices in the quarter, but indications are that at least one buyer felt that US$119 per metric ton was too high a price to pay for aluminium next quarter.

So far producers have been within US$8 of each other in the quarter, as Rusal has reportedly offered US$128 per metric ton, Rio Tinto has offered US$123 per metric ton, and two other unnamed producers offered US$125 per metric ton and US$120 per metric ton. All prices were cash prices above LME plus CIF with Japan as the destination. Rusal’s asking price mirrors the prevailing second-quarter price negotiated early this year.

Sellers’ prices were slightly above buyers expectations, as they have been looking for prices of between US$110 and US$120 per metric ton during the third quarter.

According to producers, output cuts in the People’s Republic of China are rippling out, but the effect has yet to reach quarterly premiums.