Two traders agreed to set the third quarter contract premium for aluminum imports into Japan at $81/mt plus London Metal Exchange cash CIF Japan Monday, steeply below Rio Tinto Japan's offer at $110/mt plus LME cash CIF Japan.
One international trader and a Japanese trader Monday closed a deal for 500 mt/month of seaborne Australian aluminum for loading over July- September, which was confirmed by both parties.
Another Q3 deal was reported done Monday at $83/mt plus LME cash CIF Japan, for a volume of 500 mt/month or greater, loading over July-September.
The Q2 premiums were set at $115-$117/mt plus LME cash CIF Japan, negotiated among three producers and 10-15 Japanese buyers.
In addition to producers, international trade and bank sources became involved in the Q3 contract talks as a global supply glut pushed down premiums, sources said.
Rio Tinto Japan was seeking premiums of $110/mt plus LME cash CIF Japan for Q3, down 5% from Q2, but higher than the level agreed by traders.
Rio Tinto's shipments include primary aluminum ingot as well as billet, foundry alloys and slabs, while the traders' deal was for ingot.
Two other producers, South32 and Alcoa, which are also negotiating Q3 premiums with Japanese buyers, have yet to announce offers, the buyers said.
