Japan aluminum premiums reach 11-year high on supply fears
Japanese buyers agreed to pay premiums up to 353 dollars per ton for April to June shipments. This 81 percent rise follows Middle East supply disruptions.
Aluminum buyers in Japan have finalized agreements to pay premiums of $350 to $353 per metric ton for shipments scheduled between April and June. This pricing marks the highest level in 11 years, reflecting a sharp increase of approximately 80% from the $195 premium paid during the January-March quarter. The surge is primarily attributed to escalating supply concerns stemming from conflict in the Middle East, which has disrupted regional logistics and production.
The quarterly negotiations, which serve as a benchmark for the Asian market, saw an initial offer range of $220 to $250 per ton in late February. However, global producers withdrew these offers following military actions by the United States and Israel against Iran on February 28. The subsequent risk assessment of the Strait of Hormuz led producers to raise their demands significantly as they evaluated potential threats to maritime cargo.
