Japan Primary Aluminium Premium to Drop for October-December

Primary aluminium ingot premium for Japanese buyers is expected to decrease for October-December shipment at ongoing negotiation after the premium was settled at as high as US$ 87-89 per tonne for July-September. Asian slowing demand could pressure on the negotiation. The premium is expected to be less than US$ 80 for the next quarter. The suppliers offered around US$ 80 per tonne of premium to Japanese buyers. However, the buyers sought major drop and some buyers argue the premium should be less than US$ 70. The buyers complain about high premium when they face potential demand decrease even for automobile industry. The industry interests concern slower demand under slowing economy. London Metal Exchange’s aluminium inventory already increases. The primary aluminium suppliers also expect lower premium for October-December and apparently reduced the offer to less than US$ 80 per tonne. The buyers try to reduce the level to less than US$ 75.