Japanese Q3 aluminium premiums settled at USD 75-78

Platts reported that premiums for Good Western grade aluminium for export to Japan in the third quarter settled at USD 75 to USD 78 per tonne to the London Metal Exchange cash CIF, rising from the USD 56 to USD 58 per tonne for Q2 contracts amid a supply crunch in Asia. A survey of over 20 Japanese companies including trading houses, rolling mills, construction material manufacturers and Good Western grade primary aluminium ingot producers, over the last three weeks, showed several Q3 term contracts were settled at premiums of USD 68 to USD 80 per tonne to the LME cash CIF. Premiums of USD 68 to USD 69 per tonne, agreed to in May before news of a Russian producer possibly cutting back shipments broke out, were not included in the assessment range as they were found to be outside Platts specifications. Platts assessments reflect premium levels of repeatable trades between unrelated counterparties for volumes over 500 tonnes per month. There was no deal reported in the range of USD 70 to USD 74 per tonne. Premiums rose on concerns over possible metal shortage. If Russia cuts shipments entirely to Japan in the third quarter, Japan would lose 80,000 to 100,000 tonnes of supply. This means shipments from Australia would need to increase by more than four times from April's 13,305 tonnes, to cover for the shortfall. (Sourced from www.platts.com)