Home - News - The fourth-quarter aluminum premium negotiations in Japan have been dragging on for a long time, making it difficult to bridge the differences
The fourth-quarter aluminum premium negotiations in Japan have been dragging on for a long time, making it difficult to bridge the differences
October 19, 2025
On Friday, October 17th, three people directly involved in the negotiations said that the quarterly pricing negotiations between Japanese aluminum buyers and global producers lasted unusually long, as the huge gap in opinions between the two sides regarding the premium quotations for primary aluminum for the October to December shipping schedules was difficult to narrow.
Japan, a major aluminium importer in Asia, has agreed to set a regional benchmark for the premium it pays on a quarterly basis on the spot price of the London Metal Exchange (LME), but it is unusual for the negotiations to last for several weeks after the start of the quarter.
Negotiations between Japanese buyers and global suppliers such as Rio Tinto and South32 began in early September.
In the context of sluggish demand, producers initially offered Japanese buyers a premium quote of $98 to $103 per ton for shipping schedules from October to December, a 5% to 9% drop from the level from July to September.
Market insiders said that a producer later lowered its offer from $103 to $97, but the buyer rejected it. They sought a level of around $80 and pointed out that the reason was that the spot premium was around $70.
A person from a Japanese processing factory said, "The offer of $97 has expired. We have asked the manufacturer to make a new offer." It added that weak demand and high inventories have led buyers to bargain at around $80.
Marubeni Corporation said on Friday that as of the end of September, aluminum inventories at Japan's three major ports reached 341,300 tons, up 1.8% month-on-month.
A person from a producer said that due to the continuous rise in premiums in the United States and Europe, supply in Asia is expected to tighten. Therefore, sellers insist on demanding a higher quotation level and added that negotiations may continue until the end of this month.
