Home / Metal News / Copper / Aluminum Premium in Japan Declines to One-Year Low (Update1)
Aluminum Premium in Japan Declines to One-Year Low (Update1)
Sep 9,2010 11:24CST
industry news
Source:SMM
Japan aluminum fees decline

Sept. 9 (Bloomberg) -- Aluminum premiums charged by producers to buyers in Japan, Asia's largest importer, will drop next quarter to the lowest in a year as the economic recovery slows and the effects of government stimulus measures fade.

Premiums for the three months ending Dec. 31 were set at $116 to $118 a metric ton over the London cash price in transactions agreed so far, dropping from $120 to $122 this quarter, said three executives involved in the negotiations. They declined to be identified because the talks were private.

This is the third straight quarter of reduction after the fee reached $125 to $130 in the three months ended March 31, the highest level in at least 14 years.

Demand for the metal from carmakers is threatened by an end to subsidy payments by Japan's government to buyers of fuel- efficient models, while supplies in Asia are ample, with increased shipments from Middle Eastern and Chinese producers.
 

Aluminum AL

For queries, please contact Frank LIU at liuxiaolei@smm.cn

For more information on how to access our research reports, please email service.en@smm.cn