Global aluminum producer Alcoa has offered third-quarter term shipments at a $408/mt premium to London Metal Exchange cash, CIF Japan, Japanese buyers said Thursday.
The premium is for primary aluminum ingot to be shipped to Japanese main ports over July-September. The producer could not be reached for confirmation.
"There is no demand rise in Asia to support the premiums over $400/mt," a Japanese buyer said. "This is difficult to accept."
Second-quarter premiums were $365-367/mt plus LME cash CIF Japan.
Among the producers, Russia's Rusal has been the most competitive, offering $405/mt plus LME cash CIF Japan for Q3. Rio Tinto Alcan and another Australian producer offered $410/mt premiums.
Japanese market participants said they were waiting for offers from BHP Billiton, expected later this week, before placing bids.
Other producers in the Middle East and South America typically follow the negotiation settlements between the five producers and Japanese buyers that consist of trading companies and rolling mills.
