Japan Al Users, Offshore Producers Start Premium Talks for Jan-Mar

Japanese primary aluminium users and offshore aluminium producers started premium negotiation for January-March 2010 shipment. A concerned source said there was an offer at $ 135-140 per tonne from a producer, higher by about $ 20 from the previous quarter. Japanese ingot users are negative to additional premium upsurge. They will enter detailed talks next week.

The premium for October-December 2009 was set at around $ 115-120 per tonne and some approved higher than $ 120. The premium was raised by about $ 40 from July-September 2009 to reflect aluminium supply tightness in Asian market.

Aluminium producers are offering even higher premium for January-March, though the hike range is narrower than in October-December. The producers suppose aluminium supply is relatively easing but the demand still keeps strong.

On the other hand, Japanese primary aluminium consumption still stays low even though the domestic demand bottomed out. The domestic aluminium inventory is balanced with the actual demand level. Under the condition, Japanese aluminium users are negative to approve higher premium.