Japanese fourth-quarter aluminum premium down 24% to $97/mt CIF Japan

Platts, part of S&P Global Commodity Insights, assessed the fourth-quarter premium for imported primary aluminum at $97/mt plus London Metal Exchange cash, CIF main Japanese ports, on Oct. 2, down 23.9% from $127.5/mt assessed in the third quarter of 2023.

Platts specifications are for all quarterly settlements on a CIF main Japanese port basis, negotiated before the quarter between two unaffiliated counterparties, for P1020/P1020A 99.7% primary aluminum ingot, with payment in cash against documents, for volumes of 500 mt/month or more under annual frame contracts.

In addition, Platts has excluded Russian-origin material from its CIF Japan Quarterly Aluminum premium assessment, effective Oct. 2, 2023.

The Q4 assessment was on the basis of eleven concluded settlements at $97/mt with a total volume of 11,500 mt/month reported done between Sep. 28 to Oct. 2, plus LME cash CIF Japan for seaborne P1020/P1020A ingot for loading over October to December.

The fall in Q4 premiums was largely attributed to persistently weak market fundamentals in Japan.

Market participants said the bearish outlook was expected to persist in the near term as inventory levels in Japan were expected to remain high due to the depressed demand for aluminum.

Meanwhile, Platts assessed the Platts CIF Japan spot premium for 99.7% P1020/P1020A aluminum ingot at $82-$92/mt plus London Metal Exchange cash, CIF Japan, on Oct. 2, unchanged from Sept. 29.
Source: Platts