According to a recent report, premiums for aluminium shipments to Japan for the first quarter of 2020 have been set at $83 per tonne, down 14 per cent from the fourth quarter of 2019 amid weaker aluminium demand from the electronics and auto sector. This marks the second consecutive quarterly drop. During October-December quarter, the premiums for aluminium shipments to Japan were $97 per tonne.
The premiums for Q1 2020 are lower than the initial offers of $92 per tonne made by producers. The negotiations for the pricing began in November between Japanese buyers and global producers, including Rio Tinto and South32 Limited.
Japan is Asia’s biggest importer of the light metal and the premiums PREM-ALUM-JP for primary metal shipments. The premiums it agrees to pay each quarter over the benchmark London Metal Exchange (LME) cash price set the benchmark for the region.
Industrial output in Japan shrank for the second month in November, underscoring the broadening economic impact of the months-longs Sino-US trade dispute and keeping policymakers under pressure to step up stimulus.
In January, the United States and China are set to sign a “Phase 1” trade deal, which is expected to be the beginning of an end to the conflict.
Responses
.jpg/82/0){kind=logo}
