Aluminum fee in Japan rises to 14 year high on demand

China Post quoted 4 industry executives as saying that aluminium buyers in Japan agreed to increase the fee they pay for supplies to the highest level in at least 14 years as an economic recovery boosts regional demand for the metal. The executives said that premiums for the 3 months ending March 31st have been set at USD 125 per tonne to USD 128 per tonne over the London cash price in transactions agreed so far. That compares with USD 115 per tonne to USD 125 per tonne this quarter, the highest level since Japan began buying most of its aluminium through long term contracts in 1996. The executives declined to be identified because talks are private. Trading company Marubeni Corporation has forecast that aluminium climbed 42% of 2009 as China became a net importer under CNY 4 trillion stimulus plan and economies in the US, Japan and Europe emerged from the worst post war recession. The global surplus of the metal will narrow by 54% in 2010 from 2009. Mr Kunio Ishikawa director at the Japan Aluminium Association said that “Demand is recovering at a faster pace than we had earlier expected, led by government stimulus measures.” (Sourced from Chinapost.com)