By Yuka Obayashi and Amy Lv
Some Japanese aluminium buyers have agreed to pay global producers premiums of $395 per metric ton over the benchmark price for July-September shipments, up 12-13% from the previous quarter, two sources directly involved in the pricing talks said.
Talks with other buyers are continuing. Producers had originally sought still higher premiums.
The agreed figure, which compares to $350-$353 per ton paid in April-June, marks a third consecutive quarterly increase and is the highest since January-March 2015, when premiums touched $425 per ton.
Japan is a major Asian importer of the light metal, and the quarterly premiums it agrees to pay for primary metal shipments over the London Metal Exchange cash price LME:AH1! serve as the regional benchmark.
GLOBAL PRODUCERS INITIALLY PUSHED FOR HIGHER PREMIUMS
Global producers initially sought premiums of $460-$480 per ton for July-September shipments in late May, up 30%-37% from the previous quarter, but gradually lowered their offers during negotiations before agreeing the $395 level, the sources said.
"With European premiums softening last month and ceasefire talks making progress, concerns over supply shortages have eased somewhat, prompting producers to compromise," a source at a Japanese trading house said.
The sources declined to be identified due to the sensitivity of the matter.
The Middle East accounts for around 9% of global aluminium supply, and the war has rattled the market by effectively freezing shipments through the Strait of Hormuz.
Japan imported nearly 30% of its aluminium ingots, including primary and alloy, from the Middle East in 2025.
Aluminium has been a direct casualty of the war, with missile strikes hitting two Gulf smelters.
But Emirates Global Aluminium said on Thursday it was restoring production sooner than expected at its Al Taweelah complex, one of the world's largest aluminium production sites, after damage from Iranian missile strikes in March.