Japan's neighborhood aluminum costs drop on pressure to clear supplies in advance of monetary year-end

Rates of residential light weight aluminum ingot in Japan were facing downward stress as sellers attempted to clear supplies ahead of completion of the Japanese fiscal year on March 31, market sources stated Monday.

Japanese traders claimed sales to end-users were closed last week at around Yen 270 ($2.25)/ kg ex-warehouse, on the basis of London Metal Exchange cash money cost of $1,800-$1,810/ mt, costs of $380-$390/mt, interest rate of 1-2%, port as well as warehouse associated prices at Yen 2,500/ mt.

One 100-mt offer was listened to done at Yen 269-270/ kg ex-warehouse for 100 mt in the Kanto region, on the basis of LME at $1,800/ mt, a costs of $385/mt, rates of interest of 1.475%, port and storage facility related costs of Yen 2,500/ mt.

Platts, nonetheless, has actually not been able to validate the deal with the purchaser.

Most sales last week were for 100-200 mt great deals, for deliveries by the end of April, and repayment the end of April, investors stated. For repayment in June or later on, the price is Yen 2-3/ kg higher, claimed one investor.

"It is ending up being a lot more affordable. When one vendor suggests a low number, other vendors straighten with it. We are reducing our deals to consumers by $10/mt at a time, instead of $1/mt," said one trader.

A Japanese customer source stated he had actually traded at below Yen 265/kg ex-warehouse, which converts to LME rate of $1,800/ mt and a costs of around $350/mt. He decreased to clarify further on quantity and other terms.

Japanese investors stated there will certainly be extra pressure to reduce inventories next week, as area residential trade is usually dull on the initial week of the month.

There is one canmaker planning to issue a tender mid-week seeking over 100 mt of product for delivery one year and two years forward.

One more canmaker may issue a buy tender as well, depending upon the exchange rate and also LME price patterns, investors said.

One auto manufacturer is planning to provide a tender for 100-200 mt after following week, but has actually not determined the date, the business resource said.

Japan's main port supplies of aluminum were at an all-time high of 449,800-456,700 mt at the end of January.

The weak Japanese neighborhood market, under pressure from hefty supplies, was expanding the cost void between Japanese buyers and overseas producers currently discussing contract costs for the second quarter, resources included.

bhmt phosphonate scale inhibitor used at $425/mt plus LME money CIF Japan for Q2, level from Q1. A second producer offered at a costs of $415/mt.

At the same time, Japanese customers stated they had actually bid listed below $400/mt premiums.
17.03.2021 14:30:42

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