Hard Negotiation for Japan Al Ingot Premium

Premium negotiations for primary aluminium ingot started between overseas aluminium producers and Japanese manufacturers for July-September shipment. Overseas suppliers are offering the premium hike while Japanese ingot users are requesting the premium cut. Hard negotiations are expected.The premium for April-June jumped up by US$ 20 to around US$ 85 per tonne from the previous quarter. Primary aluminium suppliers raised the premium remarkably to reflect the tighter supply in Asian market except Japan. Japanese ingot users are disapproving the additional hike for July-September after the large cost up in April-June.Domestic demand for primary aluminium maintains stagnant mainly from construction market. At the same time, aluminium re-rollers are suffered from higher productive costs for fuels and sub materials. They are unwilling to admit additional cost up for primary aluminium ingot.Ingot suppliers allege the global supply tightness caused by output decrease in South Africa and New Zealand. Demand for primary aluminium keeps the steady level in Asian countries other than Japan. The suppliers seem offering the premium hike by several dollars compared with April-June. Despite the narrow range hike, Japanese ingot users are showing disapprovals.