FOCUS: Global competition, China imports help boost quarterly MJP aluminium deals to six-year high

Initial deals for second-quarter supply of aluminium to Japan have settled at levels that would mark six-year highs, boosted by demand from other key importer regions.

Since the beginning of March, international producers have locked deals with Japanese buyers at $148-149 per tonne cif main Japanese ports (MJP), the highest since the second quarter of 2015, when the settlement was at $380 per tonne.
Deals come at a time when premiums for commodity-grade aluminium are soaring globally and while China, traditionally a net exporter, continues to import large tonnages.
“Some clients are hesitating to accept the second-quarter number at $148 per tonne and they might want to wait till Q3," a Singapore-based trader said.
“Demand in Japan is mostly stable, no huge decrease or increase but premiums now are so high, I think some consumers will continue to hold back buying,” a Japan-based trader said.

In terms of end use, aluminium demand for the first 11 months of 2020 dropped by 13.6% year on year to 3.33 million tonnes from 3.86 million tonnes previously, according...


Karen Ng

March 22, 2021

12:03 GMT