Platts assessed the South Korean primary aluminum premiums spot market at $109-$111/mt plus LME cash, CIF Busan, on Wednesday, for duty unpaid P1020 ingots with a maximum iron content of 0.14%.
The assessment rose $2.50/mt on the week, after a $1.50/mt decline the previous week.
Two regional producers reported approaches by local and global traders for spot units with duty-free status, a contrast from a week earlier when there was generally low interest in additional material outside of term contracts.
One inquiry was reportedly for 3,000 mt to be spread over February, March and April. Another inquiry was reportedly for 300-400 mt for shipment in February.
But the new appetite for spot units did not appear to extend to non duty-free metal, as two other producers reported that things were quiet on the South Korean front.
One supplier said: "We contacted Korean customers but there was no sign of [wanting] additional volume. The market is quiet".
This week's uptick in South Korean premiums was also driven by a noticeable rise in interest in Japan for spot shipments in coming months.
In the last week, Japanese traders been have restocking at $110-$113/mt CIF, after trimming term contract purchases during the December and March quarters, participants said.
"It's not about increased demand, [but compensating for reduced term purchasing over October and March]," a producer said.
Three producers put the South Korean premium clearing rate at $110/mt plus LME cash, CIF Busan. One producer said a range of $108-$115/mt was reflective of the market.
Two traders said $110/mt was a plausible clearing rate, while a third trader put duty free origins at $110-$120/mt CIF Busan, and non duty-free material at $110-$115/mt.
Last week, two consumers had endorsed $105-$110/mt CIF Busan as the market.
India's Nalco awarded last week to Trafigura a sell tender for 6,000 mt of aluminum ingots at $74.50/mt plus LME cash, CIF Singapore, for shipment in three 2,000 mt monthly lots between February and April.
Market participants have said that although Nalco's tender documents call for the metal to be delivered to Singapore, the shipments rarely end up in Singapore.
South Korea is a regular outlet for Nalco's aluminum exports, with other Asian destinations such as Vietnam, China and Thailand also taking deliveries.
Nalco currently levies freight upcharges of $14/mt and $27.50/mt to direct the shipments to South Korea's Busan and Incheon ports, respectively.
Nalco awarded its previous ingot sell tender on December 5 to Glencore at $86/mt plus LME cash, CIF Singapore. Nalco's aluminum tends to have a maximum Fe content of higher than 0.14%.
Platts South Korean aluminum spot assessment reflects the premium or discount to the LME cash price for P1020A ingots CIF Busan basis, duty-unpaid, for P1020 of any origin, with a typical trade volume of 200 mt to 2,000 mt for loading in the next 30 days.
The specifications are P1020A ingots to meet minimum LME specification, 99.7% Al min, max 0.1% Si, 0.2% Fe, 0.03% zinc, 0.04% gallium, 0.03% vanadium.
The assessment is normalized to reflect metal with a maximum iron content of 0.14%, reflecting dominant trading patterns in Korea.
Supplies from Australia, Canada, India, Indonesia, Malaysia and New Zealand enjoy duty-free status in South Korea.
