* Premiums mostly at $200-$210, up to 70 pct rise from Q2
* Buyers target ingots due to worries about short supply
* Domestic demand shows signs of recovery, but still tepid
By Yuko Inoue
TOKYO, June 18 (Reuters) – Japanese aluminium buyers, the
world’s biggest importers of the metal, locked up third-quarter
supply deals mostly at a physical premium of $200-$210 per
tonne, a record high, after global smelters cut output, four
sources directly involved in the talks said.
The premiums for July-September, which act as a benchmark
for Asia, represent a jump of up to 70 percent from the $121-122
paid over the London Metal Exchange cash price in the
current quarter, the steepest-ever quarter-on-quarter rise.
An acute shortage of supply prompted buyers to speed up
settlements, said the sources, as producers cut back output,
while demand from the financial sector remained strong, reducing
supply of accessible metals for manufacturers.
“As we needed to secure volumes, the deals were done much
quicker this time than the preceding quarter,” said one trader,
who asked not to be identified because fees are not made public.
“Because four or five major producers dominate the global
market, we have no means to counter their offers,” said another
trader.
Continued…
