Rusal offers $460/mt premium to Japan aluminum buyers

According to the Japanese traders Japanese buyers however would be looking for lower premiums.Japanese buyers usually place their bids after considering the offers of four major aluminium producers – Rusal, Rio Tinto Alcan, BHP Billiton and Alcoa.

Though Japanese buyers are not expecting a premium lower than from Q3 as spot supplies had been tight all year. However, they are expecting a moderate increases considering the recent rebound in LME prices.

Japanese traders have predicted Q4 LME three-month prices at $1,950-2,300/mt.

Platts spot premium assessment have been flat since July 1 at $400-408/mt plus LME cash CIF Japan as there were no spot deals. Japanese traders have approached LME warehouses in Asia for the metal.

A Japanese trader said he is expecting a premium of around $415/mt for Q4.

"Smelters should be able to make profit with this premium," he said.

Japanese trade and end-users agreed that the fall in LME stocks would give support to LME prices. However they are not willing to pay a very high premium.

Global LME stocks came down to 4.8 million mt this week from 5 million mt on July 1.

According to a Rusal marketing official the decline in the LME warehouse stocks indicates the market deficit. He also feels that premiums should reflect tight supplies as well as strong demand.

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