Aluminum producer and trade sources in Asia said Thursday they were eyeing sales in the US and had started looking for bulk carriers.
A source at a trading house based in Singapore said sale of Asian-origin aluminum to the US might be possible depending on freight rates.
The Platts US Transaction premium was assessed at $173/mt delivered Midwest Wednesday, which is equivalent to a premium of around $120-$130/mt CIF excluding domestic freight cost of $40-$50/mt.
If bulk ships could be secured at $30-$40/mt, selling to the US might be a better option than selling in Asia at a premium of $60-$80/mt, the trader said.
Other sources said that selling in some markets such as Vietnam commanded a premium of $75-$80/mt. Taiwan, where China has a large market share, was suffering from low demand for Western-grade aluminum and import premium was lower.
A global producer source, selling Asian aluminum, said that sales to the US was certainly an option.
"I would expect supplies from the Middle Eastern, Russian and South African producers to be heading to the US," a Japanese trader said.
But not all producers had enough cargoes to send to the US.
A Middle Eastern producer source said that spot cargoes were limited and the company's focus was Europe rather than the US.
