Global aluminum producers have offered Japanese buyers premiums of $185 to $190 per metric ton for July-September primary metal shipments, up 25% to 31% from the current quarter, according to three people directly involved in the quarterly pricing talks.
Japan is a major Asian importer of aluminum, and the premiums it agrees to pay over the London Metal Exchange (LME) cash price set the benchmark for the region. For the April-June quarter, Japanese buyers agreed to pay a premium of $145-$148 per ton, up 61% to 64% from the prior quarter.
One producer offered a premium of $190 per ton early this month, while another supplier raised its offer on Monday to $185 per ton from $175 per ton proposed in late May. The sources cited stronger demand from Europe and higher premiums in the U.S. and Europe as factors driving the increase.
Quarterly pricing negotiations between Japanese buyers and global suppliers, including Rio Tinto and South32, began in late May and are expected to continue until later this month.
The higher premiums sought by aluminum producers reflect the current market conditions, with growing demand and tightening supply pushing up prices globally. This could lead to increased costs for Japanese buyers and, potentially, higher aluminum prices in the region.