Premiums for Good Western grade aluminium ingots imported to Japan are expected to stay mostly flat in the third quarter from the second quarter levels, Japanese trade sources said on Wednesday. The market is mildly bearish and there may be some contracts with premiums settling lower than Q2, sources added.
Negotiations for the Q3 2007 premiums are expected to start in Tokyo next week ending June 1. Japanese trade sources contacted by Platts said they projected Q3 premiums to settle mostly at around the Q2 levels of $71-74/mt CIF Japan plus London Metal Exchange cash prices.
The Q3 metal demand in Japan is expected to stay flat from Q2 last year, traders said. But softer aluminium demand outlook in the US may pressure the premiums down. Some producers may be keen to sell increased volumes for lower premiums, one trader said.
"Premiums...anything but above the Q2 levels," one trader said. He added: "But it is hard to conclude premiums would fall, because the US market situation is not a strong enough reason to push the Japanese premiums down."
豫公网安备41010502003434号