Japan seeks cut in Q2 aluminum premiums to below USD 110

Japanese buyers will seek a more than 10% YoY drop in term premiums for primary aluminum shipments in the Q2 citing uncertain domestic demand outlook but suppliers will likely resist huge cuts due to firm global demand.

Term premiums for the current quarter were agreed at USD 112 per tonne to USD 113 per tonne down from USD 116 to USD 118 for October to December and USD 122 to USD 124 for the Q2 of 2010. The current January to March premiums marked the lowest in Q6 and a fourth straight quarterly drop.