Rio Tinto Upping Japan Aluminum Premiums, as Chinese, Indian Prices Rise

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Rio Tinto Alcan, having its high premium request stifled by Japanese metal buyers in Q2, is dropping it a dollar per ton for Q3 and hoping for the best.

Via Reuters: The aluminum arm of the company “has written to Japanese buyers asking for a premium of $254 per tonne over the LME cash price for July-September primary aluminium shipments, a source involved in quarterly pricing talks said on Tuesday. That compares with average premiums of $248 to $250 a tonne in the previous quarter, when Rio initially asked for a premium of $255.”

“Rio’s offer was based on expectations for higher product exports from Japan as the economic policies of Prime Minister Shinzo Abe have helped lower the yen, the source said.”

Experts aren’t convinced that Japanese buyers will say yes to $254 per ton.

What are the current aluminum prices?

The Indian aluminum cash price moved up 6.4 percent on Monday, May 27, making it the day’s biggest mover.

On the LME, the primary aluminum cash price fell 0.6 percent to $1,814 per metric ton. On the LME, the 3-month price of aluminum declined 0.5 percent to $1,847 per metric ton.

today's metal prices - MetalMiner IndXChinese aluminum prices were mixed for the day. Chinese aluminum billet finished the day up 0.3 percent. The Chinese aluminum cash price remained essentially flat. The price of Chinese aluminum scrap was essentially unchanged. The price of Chinese aluminum bar was unchanged as well.

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