Q2 MJP aluminium talks prolonged amid weak demand

Falling demand, exacerbated by the novel coronavirus outbreak (2010-nCoV) further causing market uncertainty, means market participants expect negotiations for second-quarter aluminium ingot supply to Japan to continue for longer than usual.

“Market demand is very sluggish now so it is to be expected that it wouldn’t conclude so early but I think this time it will drag way into April,” a trader said.
“This has not happened before because we are now into March 25 and still no clear number so it will be extremely interesting if nothing gets settled,” a second trader said.
Market participants expect negotiations for the second-quarter aluminium premium will likely conclude at the beginning of the second quarter, which starts in April, or even later.

“We don’t really know what exactly is going on but we heard that producers are holding onto their offers...

Published

Karen Ng

March 25, 2020

17:38 GMT

Singapore