Japan Aluminium Premium Ups to US$ 73-74/t for July-September

Japanese aluminium buyers concluded the primary ingot premium negotiation to increase to US$ 73-74 per tonne at CIF Japan for July-September, which increased for 2 quarters in a row after the premium increased to US$ 60-62 in April-June. The premium increased when Japanese ports inventory decreased to near record low of less than 250,000 tonnes. Japanese buyers are reluctant to buy new when aluminium ingot price surges at London Metal Exchange. Japanese aluminium import from China decreases though the import increased in 2005. Japan premium increased by more than US$ 10 per tonne when the aluminium premium also increases in USA and Europe. Japanese aluminium ingot supply is getting tighter with lower ports inventory. The demand is expected to increase slightly from previous year due to higher demand for automobile. Japanese trading firm sources said the premium could reach US$ 80 per tonne.