Global aluminium suppliers offer Japan Q4 premiums between $98-$103/t

• Volatile LME prices increase buyer preference for flexibility
• Japan demand weak in automotive and construction sectors

Global aluminium producers have proposed premiums of $98-$103/t for Q4 shipments to Japanese buyers, down 5-9% from the current quarter’s $108/tonne. This decline follows a significant 41% cut in Q3, highlighting persistent weakness in demand. Japan, a key importer and regional price benchmark setter, is seeing sluggish demand from major sectors like automotive and construction.

Buyers remain cautious about locking in higher premiums due to weak downstream orders and an uncertain economic outlook. Adding to the pressure, global supply conditions have improved, with more primary aluminium available from producers in the Middle East and Asia.

With volatile LME prices, buyers prefer flexibility and are leveraging their stronger bargaining position amid oversupply. Producers, aiming to secure contracts and maintain market share, are now under pressure to accept lower premiums, even as market fundamentals remain soft.