Some Japanese aluminium buyers agree to pay Q4 premiums of $255/T, 35% lower than Q3, sources say (updated)

South32

07/10/2026 12:10

Adds details in paragraphs 2, 4-6
By Yuka Obayashi
TOKYO, Oct 7 (Reuters) - Some Japanese aluminium buyers have agreed to pay global producers premiums of $255 per metric ton over the benchmark price for October-December shipments, down 35% from the previous quarter, two sources involved in the pricing talks said.
The figure is lower than the $395 per ton paid in the July-September quarter, marking the first drop in four quarters. It is also below the initial offers of $310-$325 made by producers.
Japan is a major Asian importer of the light metal and the premiums PREM-ALUM-JP for primary metal shipments it agrees to pay each quarter over the London Metal Exchange (LME) cash price CMAL0 serve as the regional benchmark.
The sharp drop reflects a recovery in Middle Eastern production after Iranian attacks on smelters in the Gulf in March and rising shipments from Indonesia, a source at a Japanese trading house said.
Emirates Global Aluminium said in August its Al Taweelah smelter was operating at 18% of capacity and was expected to return to prior output levels in early 2027. Aluminium Bahrain ALBH.BH is producing aluminium at around 80% of pre-Iran war levels, its CEO Ali Al Baqali told Reuters last month. 
Quarterly negotiations between Japanese buyers and global producers, including Rio Tinto RIO.AX, RIO.L and South32 S32.AX, began in late August and have dragged on longer than usual due to a wide gap between the two sides.
Talks between other buyers and producers are ongoing.

 (Reporting by Yuka Obayashi. Editing by Mark Potter)
 ((Yuka.Obayashi@thomsonreuters.com; +813-4520-1265;))