The premium for aluminium shipments to Japanese buyers for the fourth quarter (October to December) has been set at $175 per metric ton, reflecting a 1.7% increase from the previous quarter. This marks the third consecutive quarterly rise and the highest premium since early 2022.
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The new premium is higher than the $172 per ton from July to September but still below initial offers from global producers, which ranged from $180 to $185 per ton.
Concerns over tighter supplies in Asia, partly due to potential diversions of metals to Europe where premiums are higher, have driven this increase.
Despite the rising premiums, aluminium demand in Japan remains sluggish, with significant inventories reported at major ports. Stocks increased by 9.2% month-on-month to 327,300 metric tons by the end of August.
Quarterly pricing discussions began in late August between Japanese buyers and global suppliers, including Rio Tinto and South32.
A recent fire at Press Metal’s smelter in Malaysia raised initial supply concerns, but producers later adjusted their offers, considering the limited impact on Japanese purchases and existing weak local demand.