Japanese aluminum buyers will pay lower premiums for aluminum ingot in the third quarter as domestic demand has weakened, a trader at a large Japanese trading firm said.
High spot prices and a slowdown in demand from Japan’s extrusion market and aluminum-can manufacturers helped aluminum buyers negotiate a lower premium, said the trader.
“The Japanese market’s a little bit weaker at the moment.”
Third quarter premiums for good western grade aluminum ingots over London Metal Exchange cash prices were agreed at around $68-$70 a metric ton, cost, insurance and freight, down from $71-$73 a ton in the second quarter, she said.
Japan is Asia’s largest net importer of primary aluminum. Alcoa, Alcan and BHP Billiton are among Japan’s biggest aluminum
suppliers.
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