Japan¡¯s spot aluminum import premiums steady at $90-$100 mt

Japan’s spot aluminum import premiums were steady at $90-$100/mt plus London Metal Exchange (LME) cash CIF Japan Monday, unchanged since July 28, despite falling premiums in Europe.

Spot import trade was absent in Japan despite the strong yen, as the fourth quarter contract negotiations are expected to start this week. Japanese buyers and overseas seller sources reported no deals, offers or bids over August 20-24.

In Europe, spot premiums fell last week reacting to a tighter LME contango spread and global supply overhang and the seasonal demand slowdown. Assessment for duty-paid European premiums fell to $135-$150/mt plus LME cash in-warehouse Rotterdam last Friday from $150-$165/mt.

Sumitomo Corp said it forecasts $100/mt contract premiums for Q4, in its note to customers. Platts’ Q3 premium assessment was at $90-$100/mt plus LME cash CIF Japan. Market participants appear to be adopting Sumitomo’s view. There may be a $5/mt dip if Chinese exports reduce demand for non-Chinese aluminum or a $5/mt rise if demand improves or stocks fall, but drastic movements are unlikely, they said.

Meanwhile, local spot trade picked up Monday on the back of the stronger yen, which was at Yen 121 to US dollar compared to Yen 123-124.5 last week.

Aluminum prompt deliveries in Japan were quoted below Yen 200/kg thanks to the strong yen and LME cash at $1,500/mt at 0800 GMT Monday, Japanese consumer and trade sources said.

Copyright and Exemption Declaration :¢ÙAll articles, pictures and videos that are marked with "China Aluminum Network" on this website are copyright and belong to China Aluminium Network (www.alu.com.cn). When transshipment, any media, website or individual must list the source from "China Aluminium Network (www.alu.com.cn)". We seek legal actions against anyone that disobey this. ¢ÚArticles that marked as copy from others are for transferring more information to readers, do not represent or endorse their opinions or accuracy and reliability. When other media, website or individuals copy from our website, must keep the source. Anyone that changes the articles' sources will hold the responsibilities for copyright and law problems. We also seek legal actions against anyone that disobey this. ¢ÛIf any articles copied by our website concern the copyright and other problems, please contact us within one week.