Japan’s Q2 2021 aluminium premiums stand 6-years high at $148-$149/t

According to a recent report, the Q2 2021 premiums for aluminium shipments to Japanese buyers are set at $148-$149 per tonne, which reflect a hike of 14-15 per cent from the March quarter. In Q1 ending on March 31, 2021, the premiums were agreed at $139-$140, an increase of 57-59 per cent from the previous quarter.

Premiums have increased for the upcoming quarter primarily due to a tight container market and demand recovery from the COVID-19 induced slump, said four sources directly involved in pricing talks.

The April-June premiums mark the third consecutive quarterly rise and represent the highest premiums since the same quarter in 2015.

Japan is Asia's biggest importer of the light metal and the premiums for primary metal shipments it agrees to pay each quarter over the London Metal Exchange (LME) cash price set the benchmark for the region.

In the last quarter of 2020, Japanese buyers had agreed to pay a premium of $88 per tonne - 11 per cent higher than the earlier quarter.