S&P Global Platts assessed spot premiums for aluminum ingot imports into South Korea at $65-$68/mt plus LME cash CIF Busan Wednesday, rising from $63-$65/mt a week ago.
Spot import interest was lackluster and only one deal was reported done at $75.50/mt CIF Incheon for multiple shipments of Australian or other Good Western origin ingot in the fourth quarter.
One of the counterparties in the deal said that $75.50/mt CIF Incheon would be equivalent to $65-$68/mt CIF Busan. More trades are done on an FCA basis than CIF, but inquiries were limited, sources said. A South Korean consumer attributed low spot demand to the strike at Hyundai Motors.
A Japanese trader reported sales of 500 mt or more at over $80/mt FCA, which he said was roughly $70/mt CIF Busan.
He added that 100-200 mt lots were traded at $70-$80/mt FCA, or $60-$70/mt CIF Busan, for delivery in October or November.
A producer and a Western trader described the tender award level of $66.50/mt plus LME cash CIF Busan by South Korea's Public Procurement Service as representative of the market.
Dreample Corp. won the tender to supply 1,000 mt of Western-grade metal to be shipped to Busan in December. The company will be supplying Australian material.
A South Korean trader said the level was lower than expected as he saw current spot levels around $75/mt FCA or $65-70/mt CIF.
Platts South Korean aluminum spot assessment reflects the premium or discount to the LME cash price for P1020A ingot 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 meet minimum LME specifications at minimum 99.7% aluminum, maximum 0.1% silicon, 0.2% iron, 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.
