[Ferro-Alloys.com] Rio Tinto has opened talks on fourth-quarter Japanese aluminium premiums with an offer at the same level at which third-quarter contracts were settled, Metal Bulletin understands.

 

An initial offer of $250 per tonne was detailed in a letter sent by Rio Tinto to customers in Japan: the usual opening salvo in the Main Japan Port (MJP) premiums negotiations. Third-quarter premiums were agreed at $250 per tonne. “The Rio letter gives strong and weak factors for the premium and those are balanced so the offer is almost at the same level as the third quarter at $250 per tonne,” a trader from Tokyo said. The letter states that the demand is very stable for the light metal in Japan and after a very hot summer, especially in the months of June and July, demand from the beverage can industry and air-conditioning industry had increased, he said. “The decrease of Japanese port stocks and force majeure at Press Metal are also strong factors for the premium,” he quoted the letter as saying.