Global Aluminium Producer Slashes Premium Offer to Japan Amid Market Downturn

Published: May 30, 2025 14:13

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[Global Aluminium Producer Cuts Premium Offer to Japan Amid Weaker Market Outlook]

A major global aluminium producer has proposed a premium of US$145 per metric ton for primary aluminium shipments to Japan for July–September 2025, marking a 20% reduction from the US$182 per ton agreed for the previous quarter, according to sources involved in negotiations.

The reduced offer reflects weaker demand sentiment driven by concerns over U.S. tariffs and increased supply into Asia, particularly from the Middle East, as European premiums decline. Japanese buyers, who help set the regional benchmark, view the new offer as too high, noting that current spot premiums are down to US$110–US$120, with buyer expectations closer to US$100–US$110.

Aluminium inventories at Japan’s three main ports rose to 320,300 tons at the end of April, up 3.4% month-on-month, indicating a looser supply-demand balance. Pricing talks, involving suppliers such as Rio Tinto and South32, began last week and are expected to continue through June.

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