UC Rusal indicates $460/t premium for Q4 aluminium delivery to Japan

UC Rusal’s initial aluminium premium offers to Japanese buyers are 13-15% higher than the current-quarter premiums, market participants told Metal Bulletin, describing the hike as too high.

“We have made firm offers but I can’t talk about what that level is as it’s confidential between us and customers,” a Rusal spokesman said, adding that they had started the negotiation process for delivery of aluminium to Japan in the fourth quarter. Earlier this week, UC Rusal sent a letter to its clients indicating the Main Japan Port (MJP) premium of $460 per tonne cif basis for delivery in the October-December period, participants told Metal Bulletin. This is an indicative price and not the final offer price by UC Rusal, sources said. Third-quarter premiums had settled at $400-408 per tonne.  Surprise A trader who received the letter from Rusal said the company cited a tighter aluminium market amid decreasing stocks at the London Metal Exchange warehouses, smelter shutdowns and pullbacks and higher premiums in the USA for their indicative...


Shivani Singh

Deepali Sharma

August 22, 2014

11:38 GMT