Long Run Japan Primary Al Ingot Premium Talk

Japanese buyers continue long run talk for quarterly primary aluminium ingot premium for April-June as January-March. The suppliers started to show sign for compromise to conclude the talk. However, they cannot fill the gap with Japanese buyers when the buyers still insist on wider drop.

The premium was concluded at around US$ 60 per tonne in January-March. The premium dropped by more than US$ 10 but the buyers sought further down when the demand was very slow after financial crisis.

Japanese demand is very slow when major automakers and information technology related manufacturers keep inventory adjustment. The demand is still low level while some users started to announce slight production increase from the bottom. Japanese aluminium buyers seek wide premium down under the condition.

Chinese aluminium demand is firm and the aluminium suppliers are confident the demand recovery. The suppliers started to compromise in the year but the offer apparently is more than US$ 55 per tonne. The buyers are likely not to accept the offer and the talk could take more time for settlement.

Japanese aluminium demand for rolled products decreased by around 30% in January from a year earlier, according to Japan Aluminium Association. The demand decreased for 4 months in a row. Some buyers stopped the ingot purchase for April-June with expectation for slow demand near term.