Japan's spot aluminum import premiums, which have risen along with the US and the European premiums this week, have peaked off as keen sellers emerged, market sources said Thursday.
Platts assessed Japan's spot premiums at $105-$110/mt plus London Metal Exchange cash CIF Japan Thursday, down from $110-$115/mt plus LME cash CIF Japan.
The Japanese premiums had held at $110-$115/mt over Tuesday-Wednesday, after rising from $109-$111/mt on LME spreads flipping to contango from backwardation.
Japanese trade and consumer sources reported receiving offers from traders at $95-$100/mt, $105/mt, $107/mt and $108/mt CIF Japan, for over 500 mt lots for April-May loading.
A deal was reported closing at $95-$100/mt plus LME cash CIF Japan for April-May for over 1,000 mt tons in total.
One of the party in the $95-$100/mt deal said European demand was weak.
The deal was not accounted for in the Platts assessment, as details could not be confirmed with the deal counterparties.
Some market participants said the seller may have been in a rush to find a buyer for April shipments as vessel departure time was approaching.
LME spreads for April-May have narrowed to $0-$1/mt since Wednesday, and as a result, Japanese monthly stockholding costs of $5/mt could no longer be covered, Japanese traders also pointed out.
On Thursday, a consumer has reportedly bought over 500 mt in total at $104/mt plus LME cash, basis unknown, delivery spread out over several months after April, a Japanese trader said.
"Local deal done levels have weakened and there may be some companies with excess stocks. I can see offers discounted $5/mt from the first quarter contract premiums of $110/mt, but i don't understand where the two digit import premiums would come from. Why sell so low and be so desperate?" said a second Japanese trader.
Two producers said bids below $115/mt plus LME cash CIF Japan would not be considered.
"The improved spreads have lead to more inquiries across the globe, including Europe," said one producer.
