Rising aluminium premiums in Korea affects Japanese deal

Rising aluminium premiums in Korea affects Japanese deal Platts reported that rising spot premiums for Good Western grade primary aluminium in South Korea, Taiwan and China are having an impact on Japanese premium negotiations for the coming quarter. Japanese buyers in talks with Western producers said that despite signs of slowing demand in Japan, producers were not willing to lower premiums for the second quarter due to rising demand in Asia outside Japan. Spot premiums for Good Western grade aluminium in South Korea and Taiwan have risen to USD 65 to USD 66 per tonne plus London Metal Exchange cash CIF as compared with less than USD 60 per tonne earlier this year. According to the Korean customs data, the country imported 4,027 tonnes of aluminium from China in January 2009 and 4,512 tonnes in December 2008. A year ago, it was importing over 30,000 tonnes from China each month. One Japanese consumer source involved in the negotiations said that producers were not willing to lower the Q2 premiums from the Q1's USD 58 to USD 62 per tonne, citing strong demand. Producers are said to have proposed Q2 premiums of above USD 60 per tonne or flat from Q1.