Japanese aluminium buyers are looking to lock in fourth-quarter supplies at a premium of around $250 to $253 per tonne, two industry sources said on Wednesday, about 20 percent more than the record high level of the previous three months.
In June, Japanese aluminium buyers -- Asia's biggest importers of the metal -- had agreed on a record high physical premium of $200-$210 per tonne for the July-September quarter after global smelters cut output.
The buyers had been bracing for a rise in fourth-quarter term rates amid high premiums in the spot market, but they were resisting offers of $255-$258 per tonne from Alcoa Inc and BHP Billiton citing bleak demand prospects as car production slows, the sources said, asking not to be identified as the talks are not public.
"We don't want to see Q4 premiums to rise further from a record high premium in Q3 as there are no signs of improvements in the domestic economy," said a source at a trading house.
Buyers pay a premium over the LME cash price to cover freight and insurance and to reflect regional supply and demand.
The market was expecting a deal on fourth-quarter premiums to be struck early this week, but now it is expected to be delayed to the end of next week, the sources said.
Rio Tinto Alcan, a big supplier which usually sets an indicative price ahead of the premium talks, has not done so this time, saying it did not intend to use as a bargaining tool a supply halt caused by a force majeure event at its refinery in Oman. The force majeure has been lifted.
Japanese buyers will continue talks with suppliers at a major aluminium conference in Moscow next week.
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