Japan Q3 aluminium term buyers face price pressure

TOKYO, June 11 (Reuters) - Japanese buyers of primary aluminium have mostly agreed to a 30 percent rise in premiums for the July-September quarter, but some are facing pressure for a further hike for the remaining deals. So far the bulk of premiums for Q3 aluminium purchases have been settled at $68-$75 per tonne over the London Metal Exchange cash price, including insurance and freight costs, marking the first rise in a year. [ID:nT114452] [ID:nT191698] Some remaining sellers are pressing for a premium of $78. Premiums for the current quarter were largely settled at $56-$58. Japan's demand for aluminium tumbled from late last year as automakers and other manufacturers, hit hard by the worst economic slump in decades, drastically cut production, reducing demand for industrial metals. Some demand for aluminium, used in the automobile and packaging industries, has started to emerge after manufacturers aggressively worked down swollen inventories. During the current talks, Japanese buyers hurried to secure aluminium for the next quarter even at the expense of paying a high premium after indebted Russian aluminium company United Company RUSAL said it had no metal to offer to Asia in Q3. Russia is the No.2 exporter of the metal to Japan, while RUSAL is the world's largest aluminium producer. RUSAL's failure to provide an explanation for its export suspension has fanned fears about future supplies, which could have serious repercussions in Japan.