Platts assessed South Korea's primary aluminum premiums at $80-$83/mt plus LME cash, CIF Busan, Wednesday, for seaborne P1020 ingots with a maximum iron content of 0.14%, loading in the next 30 days, duty unpaid.
The assessment was down fell $8.50/mt from last week, pressured by global long positions and institutional investors keen to destock.
A producer source reported belatedly a sale in early June of 2,000 mt at below $85/mt plus LME cash, CIF Incheon, for shipment in June, of Asian duty free origin.
He said Monday he would expect an equivalent sale into Busan this week to be closer to $83/mt due to the lower cost of freight.
In the last week, consumer, producer and trader sources reported seeing bid-ask levels at $75-$85/mt CIF Busan for single spot shipments in July.
Six consumer, producer and trader sources said they would regard $80-$83/mt CIF Busan as a fair reflection of current premiums for a single spot shipment.
A consumer put the domestic market at $90-$100/mt plus LME cash, FCA basis, for a single spot shipment. Q3 DISCUSSIONS IN PROGRESS
Discussions were in progress for third quarter domestic trades on an FCA basis, with some tonnage heard settled.
Consumer Namsun awarded to two suppliers a buy tender for 7,500 mt of ingots FCA Busan basis, for delivery between July and September.
Namsun asked for 2,400 mt each for July and August, and 1,700 mt in September.
The tender closed June 20, but there was limited transparency surrounding the results.
A local trader reported a Q3 sale for 1,500-2,000/month at $85-$90/mt plus LME cash, FCA Busan, comprising duty-free origins at the seller's option.
A South Korean consumer suggested securing Q3 tonnage in the low $90s/mt plus LME cash, FCA basis, but did not disclose the metal's origins.
Platts surveyed market participants earlier on how they would convert FCA Busan values to CIF, and a notable number indicated that CIF values would typically be $10-$15/mt below FCA. Others have cited price differentials ranging from $5/mt to $8/mt, or none at all.
The conversion differences appear to stem from varying credit terms, trucking cost arrangements, discharge rates at ports, terminal handling charges, bulk and containerized freight rates and in certain cases currency upcharges.
The conversion differences may also be related to whether the metal is stored in an LME-registered or non-LME registered warehouse, a trader said. INDIA'S NALCO, VEDANTA FLOAT SELL TENDERS
India's Nalco issued a sell tender for 3,000 mt of aluminum ingots for shipment to Singapore in four 750 mt monthly lots between July and October. The deadline for bids is June 24.
Market participants have said in the past that although Nalco's tender document calls for the metal to be delivered to Singapore, buyers often choose to send the metal to South Korea, followed by other Asian destinations such as Vietnam, Japan, China and Thailand.
Should the buyer choose to direct the shipments to Singapore this time around, Nalco will be levying freight upcharges of $9/mt and $22/mt respectively for Busan and Incheon.
Nalco's P1020 tends to have an average Fe content of greater than 0.14% and is sometimes discounted to supply from other sources in India and Australia.
India's Vedanta closed but has yet to award a sell tender for 15,000 mt of aluminum ingots for shipment to any port at the buyer's option, in 2,500 mt monthly lots between July and December. The deadline for bids was June 21 with validity until June 23.
Platts South Korean aluminum spot assessment reflects the premium or discount to the LME cash price for P1020A ingots CIF Busan basis, for P1020 of any origin, with a typical trade volume of 200 mt to 2,000 mt for loading in the next 30 days, duty unpaid.
The specifications are P1020A ingots to meet minimum LME specification, 99.7% Al min, max 0.1% Si, 0.2% Fe, 0.03% zinc, 0.04% gallium and 0.03% vanadium.
The assessment is normalized to reflect metal with a maximum iron content of 0.14%, reflecting dominant trading patterns in South Korea.
