Sources: Global aluminum producers raise first-quarter premium quotes for Japanese buyers.

Two sources involved in quarterly pricing negotiations said that major aluminum producers have raised the premium for primary aluminum offered to Japanese buyers for January to March from the initial range of $190 to $203 per ton to $210 to $225 per ton. Japan is one of the largest aluminum importers in Asia, and the premium agreed to be paid each quarter over the London Metal Exchange spot price serves as the pricing benchmark for the region. The latest quarterly pricing negotiations between Japanese buyers and miners such as Rio Tinto and South32 began in early December. Sources said that negotiations typically conclude before the start of the next quarter, but this round of negotiations is expected to continue into the next month. The quotes previously offered by producers to Japanese buyers were at a premium of $190 to $203 per ton, representing an increase of 121% to 136% from this quarter. One source working at an aluminum producer said, "We were hoping to reach an agreement this month, but there is still a large gap between the sellers and buyers, so negotiations might continue into the new year." A second source at an aluminum rolling mill stated that despite weak demand in Japan, the spot premium has risen to around $160 to $170 per ton, adding that it seems inevitable for prices to rise compared to this quarter.