Aluminium Producer Proposes Higher Q4 Premium Amid Tight Supply in Asia

A global aluminium producer has proposed raising the premium for October-December primary metal shipments to Japan to $185 per metric ton, reflecting an 8% increase from the previous quarter's premium of $172 per ton. This offer, made on Tuesday, highlights the tightening supply of aluminium in Asia as some shipments are being redirected to Europe and North America, where premiums are higher.

Japan, one of Asia's largest importers of aluminium, negotiates these premiums each quarter, setting a benchmark for the region. The proposed increase comes despite sluggish demand in Japan, with local market spot prices currently ranging between $160 and $170 per ton.

Aluminium stocks at three major Japanese ports were reported to have declined to 299,600 metric tons by the end of July, a drop of approximately 5.7% from the previous month, according to Marubeni, a Japanese trading house.

Negotiations for the final premium are ongoing between Japanese buyers and global suppliers, including major industry players like Rio Tinto and South32, and are expected to continue into late September.