Japanese spot aluminum import premiums held steady Wednesday, though they looked set to follow US premiums higher, industry sources said.
S&P Global Platts CIF Japan spot premium assessment was kept at $65-$70/mt plus London Metal Exchange cash CIF Japan Wednesday, unchanged from Tuesday.
"There's nothing special today. The spot premium is steady...though there's upward potential as the US premium and LME aluminum prices are higher," a Japanese trader said. "The yen...is still weak."
A Japanese consumer said the spot premium at $65-70/mt was appropriate amid a quiet market.
"I have not bought anything this week and I don't want to keep stocks," the consumer said. "Summer is over and the aluminum beer can is not as good. I did not hear any spot deal done in the market. There's an upward potential in the Japanese premium due to higher US premium but the Japan spot market is quiet as the yen is weak."
A Middle Eastern producer also said the spot premium remained at $65-$70/mt.
He added that he had not received any request for spot material as nobody was taking any extra tonnage.
An international producer, however, said he would sell spot at the fourth quarter level of $75/mt plus LME cash CIF Japan as he had heard $75/mt in the Asia region, but added that he had not heard done deal at $75/mt to Japan.
A Japanese trader said the realistic range for CIF premium should be slightly wider at $65-$75/mt on higher US and European premiums and he had also heard smaller tonnages of 200 mt heard done at $69-$76/mt.
Platts assessed spot 99.7% P1020 US aluminum transaction premium at 6.90 cents/lb, plus LME cash, delivered Midwest, net 30-day payment terms, Tuesday, from 6.75 cents/lb on October 4 and 6.15 cents/lb on September 12.
On Tuesday, the LME official cash price for aluminum stood at $1,672.50-$1,673/mt, compared with $1,670-1,670.50/mt last Tuesday and $1,545-$1,545.50/mt on September 12.
