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Platts assesses Q3 Japan aluminum premiums lower at $118-$119/mt plus LME, CIF

Tuesday, Jul 04, 2017

Global Platts assessed the premium for imported primary aluminum in the third quarter of 2017 at $118-$119/mt plus London Metal Exchange cash, CIF main Japanese ports, down 7.4% from Q2.

The Q3 assessment was on the basis of 12 settlements at $118-$119/mt plus LME cash, CIF Japan, for seaborne P1020/P1020A ingot loading over July to September, for a volume higher than 500 mt/month.

The total volume for the 12 settlements was 13,000 mt/month or more. All the settlements were under annual contracts in which the total volume was set for the year, but the premiums would be negotiated every quarter, market sources said.

Out of the 12 settlements, seven were at $119/mt plus LME cash, CIF Japan, for a total volume of 7,000 mt/month or more, while five were at $118/mt plus LME cash CIF Japan for a total volume of 6,000 mt/month or more, the sources added.

Platts specifications are for all quarterly settlements on a CIF main Japanese port basis, negotiated prior to Q3, between two unaffiliated counterparties for P1020/P1020A 99.7% primary aluminum ingot of 500 mt/month or more, with payment in cash against documents.

Five Q3 settlements were not taken into account for the assessment.

Two deals were reported to have closed at $118-$119/mt plus LME cash CIF Japan, but were determined to have fallen outside Platts specifications as they were for value-added products.

One deal was for ingot of a volume of less than 500 mt/month.

One deal was between two affiliated companies.

One deal was reported on a floating basis -- the published quarterly index minus a discount of $10/mt.

Around 20 companies, comprising Japanese trading houses, consumers and overseas suppliers, took part in the negotiations that began in May.

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