Japan’s Aluminium Premium Falls 20% for Q2 as Domestic Demand Stays Weak

The premium for aluminium shipments to Japanese buyers for the April–June quarter has been set at $182 per metric ton, a 20% drop from the $228 charged in the previous quarter, according to sources directly involved in the negotiations.

This marks the first quarterly decline in premiums in five quarters and reflects ongoing sluggish demand in the domestic market. The agreed price is also notably lower than the initial offers made by global producers, which ranged from $245 to $260 per ton.

The premium is a key benchmark for Asian markets and is paid on top of the London Metal Exchange (LME) cash price for physical delivery of aluminium. The reduced premium underscores a weak near-term outlook for aluminium consumption in Japan, despite broader global supply tightness.