Japan's 2008 Q1 aluminium premium levels to $65 per ton

Tokyo, Nov 20 -- Traders said on Tuesday, Japanese primary aluminium contract premium for Q1 2008 settled at $65 per ton, no change from Q4, due to the demand from construction pressured price. The negotiation between Japanese buyers and Australian and European metal producers is moving on steadily. There was deal with premium at CIF $65 per ton over London Metal Exchange spot price. The negotiation began in this week. More producers are expected to hold negotiation in next week; however, the deal has set the tone for further talks. A Japanese trader said, "There is no actual change from last negotiation. The Japanese demand is still softening; however, the demand from other countries in Asia is strong. As such, there is no real reason for premium to slide sharply." "The freight and production costs are rising; in this condition, the level is reasonable for both buyers and sellers." Japan is the biggest net importer of primary aluminium in Asia, with the demand over 2 million tons.