Aluminum buyers in Japan, the world’s largest aluminum importer, are not happy about paying high, unchanging premiums recently set by producers.
“We want premiums to fall this time as we see slack demand and weaker premiums in the United States and Europe,” Reuters quoted an aluminum end-user as saying. He went on to cite $238 to $240 as the preferred premium range. Producers left premiums at $250 for shipments through December, the same as last quarter.
“Producers claim that aluminum inventory in Japan is declining and demand for automobiles and houses are solid, partially because of the government’s stimulus program,” a trader was quoted as saying. “But buyers don’t see that has happened.”
Today’s Aluminum Prices
Rising 4.0 percent, the Indian aluminum cash price experienced the biggest change for Wednesday, August 28.
The cash price of primary aluminum saw a 0.4 percent decline on the LME to $1,828 per metric ton. On the LME, the aluminum 3-month price declined 0.2 percent to $1,878 per metric ton.
Chinese aluminum cash, bar, billet and scrap prices were flat for the day.