Premiums on Japan aluminum imports drop 14% for Jan-March
2019-12-30 14:51:55 [Print]
Premiums for aluminum shipments to Japan for the first quarter of 2020 were set at $83 per tonne, down 14% from the previous quarter amid soft demand from electronics and auto companies, two sources directly involved in the pricing talks said.
The figure is lower than the $97 per tonne paid in the October-December quarter and is the second consecutive quarterly drop. It is also lower than the initial offers of $92 made by producers.
Japan is Asia's biggest importer of the light metal and the premiums for primary metal shipments it agrees to pay each quarter over the benchmark London Metal Exchange (LME) cash price set the benchmark for the region.
The latest quarterly pricing negotiations began last month between Japanese buyers and global producers, including Rio Tinto, and South32 Ltd.
The figure is lower than the $97 per tonne paid in the October-December quarter and is the second consecutive quarterly drop. It is also lower than the initial offers of $92 made by producers.
Japan is Asia's biggest importer of the light metal and the premiums for primary metal shipments it agrees to pay each quarter over the benchmark London Metal Exchange (LME) cash price set the benchmark for the region.
The latest quarterly pricing negotiations began last month between Japanese buyers and global producers, including Rio Tinto, and South32 Ltd.