The first-quarter 2016 aluminum contract premiums were settled at $110/mt plus London Metal Exchange cash CIF Japan with multiple producers, up from $90/mt plus LME cash CIF Japan for Q4 2015, a Japanese buyer said Friday. Producers, however, declined to comment.
For the settled contracts, producers had offered at premiums of $110-$120/mt plus LME cash CIF Japan, up from Q4, and Japanese buyers had counter-bid at $95-$100/mt plus LME cash CIF Japan.
The higher premiums offered by the producers were up from Q4 due to higher US and European premiums, while the buyers did not raise bids saying demand and supply conditions in Japan had not changed from three months ago.
Some negotiations are still ongoing between Japanese buyers and producers, with bids seen at premiums around $95-$100/mt and offers at $110-$115/mt, negotiators said.
