Japanese 4Q Aluminum Premiums Settle Around $65/Ton

Japanese aluminum consumers have forced aluminum producers to accept lower premiums in the fourth quarter, with most deals settled around $65 a metric ton and some even at $63-$64, traders said. Australian and European producers opened the negotiations with a wide range of offers between $67 to $75, but had to give up ground because of weak demand and high levels of producer stocks in Japan, they said. Japan is Asia's largest net importer of primary aluminum. Alcoa, Alcan and BHP Billiton are among Japan's biggest aluminum suppliers. Third quarter premiums were settled around $68-$70 a ton, and Japanese consumers were seeking premiums in the low 60s. "Now in Japan, it's a very horrible situation. Rolling mills have very big stocks," said an aluminum trader at a large Japanese trading house involved in the negotiations. "There are lots of stocks in minor ports." Due to a relatively short summer, demand from the beverage industry and irconditioner manufacturers has been weak, and isn't expected to recover during the seasonally weaker winter period.