Panasonic has bought primary aluminum at $86/mt plus London Metal Exchange cash, CIF main Japanese port, via a tender that closed this week, several participants in the tender said Friday.
Global Procurement Company of Panasonic Corporation bought 1,000 mt of Good Western 99.7% primary aluminum for August loading from an overseas supplier, sources said.
Panasonic could not be reached for confirmation.
The tender participants comprised producers as well as Japanese and international traders, the sources added.
Japanese buyers started bidding at $86/mt plus LME cash, CIF Japan, or lower, following the Panasonic tender, market sources said.
Sellers, however, rejected the bids. Two spot deals were reported for 1,000 mt or less -- one at $90/mt plus LME cash CIF Japan and another at $94/mt plus LME cash CIF Japan -- for August or August-September loading.
The wider gap between spot and quarterly premiums was puzzling, market participants said.
The June tender was awarded at $104/mt plus LME cash CIF Japan, 19% below the Q2 premium of $128/mt plus LME cash CIF Japan.
The July award level at $86/mt plus LME cash CIF Japan is 27% below the Q3 premium of $118-$119/mt plus LME cash CIF Japan.
