Aluminium shipment premium for Q1 2024 is offered at $95/t to Japanese buyers

According to a recent report, a global aluminium producer has offered Japanese buyers a shipment premium of $95 per tonne over the global benchmark price for the first quarter of 2024 (January 1-March 31). The news came on December 1 after three sources directly involved in quarterly pricing talks reported.

Compared with the ongoing quarter, the premium proposed for Q1 2024 is $2 per tonne or 2.06 per cent lower. Currently, Japanese buyers are paying a premium of $97 per tonne for Q4 2023.

Japanese premiums have been reducing constantly over the past few quarters. The premium in Q4 2023 is abysmally down by 24 per cent from the previous quarter’s premium of $127.5 per tonne.

The premium agreed upon for Q4 is also lower than in Q2 2023, between $125-130 per tonne.

Japan is Asia’s biggest importer of aluminium and the premiums it pays for primary metal shipments over the LME cash price set the benchmark for the region.

According to the Japan Aluminium Association, Japan’s unwrought aluminium imports in Q3 2023, ended September 30, were around 521,000 tonnes, down by 0.95 per cent Q-o-Q from approximately 526,000 tonnes.