Japan Al Users to Reduce Premium by 5-10 yen/t in January-March

Japanese aluminium re-rollers and major trading firms aim to reduce primary aluminum premium by US$ 5-10 from US$ 117 per tonne for January-March 2011 when the demand in Japan would decrease in January-March and spot premium shows sign to decrease. The Japanese users and overseas smelters heve started the price negotiation.

Japanese trader source said, the primary aluminium users in Japan received inquiries for US$ 2-3 per tonne reduction in premium for January-March from overseas aluminium smelters premium in Europe stays high at US$ 190-205 including tariff. On the other hand, the premium in Japan decreased to less than US$ 100 at tender held by Japanese major trading firm, according to trader source.

Japanese aluminium users aim to reduce the premium to less than US$ 110 per tonne for January-March while the reduction in premium for October-December was only around US$ 3. The price negotiation is expected to end in early December.