S&P Global Platts assessed spot premiums for aluminum at $95-$115/mt plus London Metal Exchange cash CIF Japan on Wednesday, rising from the previous $95-$100/mt plus LME cash CIF Japan as the US spot premiums hold at nearly two-year highs of 10 cents/lb ($220/mt) delivered Midwest.
Following Russian producer Rusal offering $125/mt plus LME cash CIF Japan as the second quarter contract premium, up 32% from Q1's $95/mt plus LME cash CIF Japan, spot inquiries increased, said one Japanese trader.
A second producer was reportedly offering Q2 at $130-$140/mt plus LME cash CIF Japan, sources said, but Platts could not confirm.
One international trader said he offered spot cargo at $115/mt plus LME cash CIF Japan for March loading, but the buyer rejected it as too high.
The Japanese trader put the tradeable spot import level at $100-$115/mt plus LME cash CIF Japan, saying that buyers were likely to reject offers above $115/mt CIF Japan while there are no sellers below $100/mt plus LME cash CIF Japan.
A second Japanese trader put the tradeable spot level at $90-$100/mt plus LME cash CIF Japan, adding he was cautious as the LME spread was narrowing, with some months flipping into backwardation this week.
The LME cash-three month spread was $4/mt, and March-April was flat Wednesday.
The domestic spot market was without a clear direction.
One Japanese trader said deals were done at above Yen 230/kg ($2,053/mt) ex-warehouse/delivered basis, which was around $125/mt plus LME cash CIF, for several hundred ton lots for March-April delivery.
A second Japanese trader put Yen 233/kg ex-warehouse as the market, putting the premium level at $110-$125/mt depending on the LME cash price, exchange rates, interest rate and payment terms.
Meanwhile, a Japanese consumer said he bought several hundred tons this week at a discount to the quarterly contract import premium.
