Reuters reported that Japan's aluminium premiums for January to March shipments were mostly set at USD 240 to USD 245 per tonne, down from a record in the current quarter, reflecting easing demand as the world's third largest economy slips into recession.
Three sources directly involved in the talks said that Japan is Asia's biggest importer of the metal and the fee sets the benchmark for the region. Premiums are paid over the benchmark London Metal Exchange cash price to secure physical metal.
Despite the fall, premiums remain lofty. They are more than double this year's first quarter terms of USD 112 and down just 6% from a record USD 254 to USD 255 for the current quarter.
They have been inflated mainly because of large stocks locked up by banks in financing deals, and behind long queues at warehouses, which make it difficult for manufacturers to access supplies.
A fall in the fee for buyers in Japan is the first in more than a year. Demand has deteriorated in the country's domestic auto and electronics sectors, while its exports have been hit by a global growth slowdown and a territorial dispute with China.
One of the sources said that "Some deals were set at USD 242 and USD 240, a tonne in addition to USD 244. Volume wise, deals that settled at USD 245 should be fewer than others."