These proposed premiums represent an increase of about 13 to 28 per cent compared with the levels agreed upon in the previous quarter, according to sources directly involved in the ongoing quarterly pricing negotiations.
Japan is among the largest aluminium exporters in Asia, and the quarterly premiums it agrees to pay above the London Metal Exchange cash price play a crucial role in establishing standard prices for the wider Asian market.
During the January-March quarter, Japanese buyers accepted a premium of USD 195 per tonne, which marked a sharp increase of 127 per cent from the previous quarter. The significant rise in aluminium premium prices is driven by limited global supply and strong regional demand.
