S&P Global Platts Thursday assessed the premium for imported primary aluminum in the second quarter at $129/mt plus London Metal Exchange cash, CIF main Japanese ports, up 25% from $103/mt CIF Japan for Q1.
The Q2 assessment was on the basis of 12 settlements reported at $129/mt plus LME cash for the loading month, CIF Japan, for seaborne P1020/P1020A ingot loading over April-June, for a volume higher than 500 mt/month.
Total volume for the 12 settlements was 10,250 mt/month or more. All the settlements are under annual contracts in which the total volume is set for the year, but premiums are negotiated every quarter, market sources said.
Platts specifications are for all quarterly settlements on a CIF main Japanese port basis, LME quotation period for the month of loading, between two unaffiliated counterparties for P1020/P1020A 99.7% primary aluminum ingot of 500 mt/month or more, with payment in cash against documents.
Four settlements were not taken into account for the assessment.
One deal was reported to have concluded at $129/mt plus LME cash CIF Japan, but was determined to have fallen outside Platts specifications as it was for value added products.
Two deals were for volumes less than 500 mt/month.
One deal was between related counterparties.
Around 20 companies, comprising Japanese trading houses, consumers and overseas suppliers, took part in the negotiations that began earlier last month.
