Japan Q1 aluminium premiums mostly set at $112 -sources

Premiums for primary aluminium shipments to Japan for the January-March quarter have mostly been set at $112 per tonne, down 5 percent from the previous quarter's $118, industry sources directly involved in the talks said.

 

 

That marked a second consecutive decline in premiums as a global economic slowdown, the strong yen and flooding in Thailand -- where many Japanese manufacturers have parts of their supply chains -- have made Japanese aluminium buyers cautious of the market outlook.

 

 

Aluminium is used in products ranging from computers to planes.

 

 

The premiums are over the London Metal Exchange cash price, and includes insurance and freight costs.

 

 

Japanese trading houses and fabricator and suppliers including BHP, Rio Tinto and Alcoa Inc have been negotiating since late last month.