Rusal Asks For Record $460 Per Ton Premium for Oct-Dec Aluminum

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United Company Rusal Plc , the world’s biggest aluminum producer, has kicked off talks with Japanese buyers at a record high premium of $460 per ton for October-December shipments of the metal, three sources told Reuters.

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Japan is Asia’s biggest importer of aluminum, and the premiums that it agrees to pay each quarter over the London Metal Exchange cash price set the benchmark for the region.

Rusal sent an email to Japanese buyers on Tuesday, Reuters reported, with an early indication of the premium of $460 per ton, up 13-15 percent from the previous quarter, citing strong demand and higher overseas premiums, the sources involved in quarterly pricing negotiations said on Thursday.

The proposal is not considered to be the company’s formal offer and it may change after initial discussions with its customers and depending on rivals’ bids, the sources said.

The aluminum 3-month price saw the biggest increase at 2.2 percent on the LME, finishing at $2,037 per metric ton for Wednesday, August 20. On the LME, the cash price of primary aluminum rose 1.7 percent to $2,028 per metric ton. The cash price of primary Indian aluminum gained 1.0 percent to finish at INR 124.80 ($2.05) per kilogram.

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Chinese aluminum prices were flat for the day. The price of Chinese aluminum scrap continues hovering around CNY 12,250 ($1,994) per metric ton for the fifth day in a row. For the fifth day in a row, the price of Chinese aluminum billet remained essentially flat at CNY 13,590 ($2,212) per metric ton. The price of Chinese aluminum bar saw little movement at CNY 14,200 ($2,312) per metric ton. The Chinese aluminum cash price was unchanged at CNY 13,960 ($2,273) per metric ton.

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