Japan's spot aluminum premiums have widened Thursday to $107-$112/mt plus London Metal Exchange cash CIF Japan, from $109-$111/mt plus LME cash IF Wednesday reflecting directionless trade, according to Platts assessments.
Some sellers have turned aggressive, looking for buyers of several thousand ton lots. The sellers, however, were not reaching out to consumers who typically seek smaller lots of 500-1,000 mt.
Some Japanese buyers have raised concerns that supplies may tighten in some areas of the country during the April-June quarter.
Japanese traders have been reluctant to increase purchases for the near-term deliveries, as they fear a possibility of LME cash-three months contract spreads flipping into backwardation.
This may trigger tightness in Japan's supplies, and some traders and consumers have said they were prepared to pay $110/mt plus LME cash CIF Japan for spot, if not more.
The Japanese buyers expressed surprise upon learning there have been spot offers for less than $110/mt plus LME cash CIF Japan, the first quarter contract premiums.
Due to the LME cash-three months spread, market participants are more comfortable discussing July-December transactions, although the April-June contract premiums are still in negotiation, said a trader and a consumer.
Deals, offers and bids were reported Thursday in a range of $105-$115/mt plus LME cash CIF Japan. Platts determined the repeatable range to be $107-$112/mt.
A Japanese trader was offered by a global supplier $105/mt plus LME cash CIF Japan for 1,000 mt of Australian metal, April or later loading. The trader rejected the offer.
A Japanese consumer bought 100 mt/month for April-June at $107/mt plus LME cash CIF Japan, according to a second Japanese trader.
A third Japanese trader said $110/mt plus LME cash CIF Japan was the tradeable spot level, but he was not in the spot market and has not received offers.
A producer said he would not sell below $110/mt plus LME cash CIF Japan but buyers are generally eyeing to buy below $110/mt. He has not made any spot offers. He has not received bids.
The first Japanese trader was offered $112/mt plus LME cash CIF Japan for 1,000 mt/month from April to December.
A second consumer said one of his suppliers, a Japanese trader, bought at $115/mt plus LME cash CIF Japan for April-June from a producer, but the deal could not be verified with the producer.
Platts assessments are for prompt spot cargoes, but deals, bids and offers for April-June were considered for the assessment, as there are producers not accommodating cargoes for April loading after March 15.
