Japan, a major importer of aluminium in Asia, plays a pivotal role in regional price formation. The premiums for primary metal shipments are determined quarterly over the London Metal Exchange cash price (CMAL0), a benchmark that reflects prevailing market conditions.
Japanese buyers had agreed to a premium of USD 228 per tonne in the preceding January-March quarter, the highest in nearly a decade and up 30 per cent from the previous quarter. This marked escalation has been attributed to several converging factors.
According to the insights from S&P Global’s Platts research and analysis wing, the premium surge in the first quarter of 2025, which averaged USD 228 per tonne, is primarily due to the limited availability of primary metal. Production cuts, largely due to high alumina prices in the second half of 2024 that peaked at a historic USD 805 per tonne on December 4, have exacerbated the scarcity.
