Thai aluminum importers expect $2-3/mt increase in Q2 term prices

Thai importers of primary aluminum are bracing themselves for a possible $2-3/mt increase in their second quarter term contract prices, as a reflection of robust global demand, and higher freight and insurance rates from the Middle East, industry sources said this week.

 Trades are based on the average LME cash value for the loading month, on a CIF basis. Thailand's Q1 premiums ranged from $100-110/mt for western grade cargoes, and $90-95/mt CIF for non-western grades.

Thailand typically pays lower prices than Japan for aluminum due to competitive supplies from the Middle East. Japan imports aluminum primarily from Australia, followed by Indonesia, South Africa and a little from the east coast of Russia.

Thailand and other Southeast Asian countries source aluminum largely from the Middle East, complemented with supplies from Australia and New Zealand.