Platts assessed spot aluminum premiums on a CIF Japan basis at $90-$100/mt plus London Metal Exchange cash on Tuesday, up from $90-$95/mt plus LME cash on Monday as sellers held on to higher premiums.
Two overseas sellers said they would offer spot cargoes at a premium of $115/mt or higher to LME cash, CIF Japan.
One supplier said there is significant demand and he is able to find interested buyers outside of Asia.
"I will try to get $115/mt as the first quarter Japanese contract premiums are likely to settle around there," said a another seller.
Japanese buyers said while spot offers below $100/mt plus LME cash CIF Japan were unlikely, bids at $100/mt or $115/mt plus LME cash CIF Japan were also unlikely.
The $20-30/mt perception gap between buyers and sellers persisted as buyers maintained that on the back of high local stocks, there was no need for spot imports.
"It is only after the start of Q1 talks that we started to hear possibilities of the market going up. Before the talks, there was no positive trend," said a consumer, adding that an offer at $100/mt plus LME cash CIF Japan will be rejected.
Platts previously reported that one Japanese trader plans to skip Q1 term import shipments on the back of high stocks.
Meanwhile, a Japanese trader said: "I am seeing the current market at $100/mt plus LME cash CIF as the Q1 offers [at $110-$120/mt plus LME cash CIF] have impacted the market."
"There are people who are upbeat but there is no clear move up. There are also possibilities of Q1 settling below $100/mt plus LME cash CIF Japan," said another Japanese trader.
Producers are offering in a range of $110-$120/mt plus LME cash CIF Japan for Q1, while buyers placed first bids at $92-$95/mt plus LME cash CIF Japan.
