Make Kitco Your Homepage

Some Japan aluminium buyers agree Q3 premiums at $108/T, up 3% on qtr -sources

Kitco News

TOKYO, June 12 (Reuters) - Some Japanese aluminium buyers have agreed to pay a premium of $108 per tonne for shipments in July to September, up 3% from the current quarter, amid tighter supply in Asia, three sources directly involved in the pricing talks said on Wednesday.

The figure is higher than the $105 per tonne paid this quarter and marks a second straight quarterly increase. Producers had originally sought $115-$120 per tonne. Japan is Asia's biggest importer of aluminium and the premiums for primary metal shipments it agrees to pay each quarter over the benchmark London Metal Exchange cash price set the benchmark for the region.

The latest quarterly pricing negotiations began late last month between Japanese buyers and global smelters, including Rio Tinto Ltd and South32 Ltd, and are expected to continue until later this month.
(Reporting by Yuka Obayashi; Editing by Tom Hogue)

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.