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Q4 Japan aluminum premium at $94-$95/mt plus LME, CIF

Monday, Oct 09, 2017

  S&P Global Platts assessed the premium for imported primary aluminum in the fourth quarter of 2017 at $94-$95/mt plus London Metal Exchange cash, CIF main Japanese ports, down 20% from $118-$119/mt CIF Japan for Q3.

The Q4 assessment was on the basis of 15 settlements reported at $94-$95/mt plus LME cash, CIF Japan, for seaborne P1020/P1020A ingot loading over October to December, for a volume higher than 500 mt/month.

The total volume for the 15 settlements was 11,500 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 15 settlements, eight were at $94/mt plus LME cash, CIF Japan, for a total volume of 7,000 mt/month or more, while six were at $95/mt plus LME cash, CIF Japan for a total volume of 4,000 mt/month or more, and one at $94.50/mt plus LME cash, CIF Japan, for 500 mt/month or more, the sources added.

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

Three settlements were not taken into account for the assessment.

One deal was reported to have closed at $95/mt plus LME cash CIF Japan, but was determined to have fallen outside Platts specifications as it was for value-added products.

One deal was between two affiliated companies.

One deal was reported on a floating basis, using the quarterly premium index published by Japan's Nihon Keizai Shimbun.

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

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