TOKYO : Trading house Sumitomo Corp expects Japanese aluminium premiums to remain at between $125 and $175 a tonne next year, against $148 this quarter, although changes in Russian supply could be a swing factor, a company manager said on Thursday.
Japan's premiums for the July-September quarter were $148 a tonne, down from $172 in April-June and $177 in January-March, reflecting weak demand for automobiles and rising local inventory. "The premiums are expected to stay in a range of $125-$175 a tonne next year, with market focusing on the flow of Russian metals," he added.
The LME prices of aluminium, the most energy-intensive metal to produce, have eased in recent months due to disquiet about a global downturn hitting demand. It has shed 40 per cent since touching a record high of $4,073.5 a tonne in early March to around $2,400 by Thursday.