First Japanese Q2 2025 aluminum premium deal reported at $182/mt CIF Japan

The first quarterly aluminum premium contract for shipment volumes of 1,000 mt/month or more over April-June was reported at $182/mt, plus London Metal Exchange cash settlement average of the shipment month, CIF main Japanese ports (MJP). The deal was reported by a Western producer on March 24 after the Asian close.

The reported premium for this first Q2 2025 MJP deal represents an increase of about 20% from the Platts Q1 2025 MJP assessment of $228/mt.

Negotiations for Q2 MJP began with offers from producers at $245-$260/mt.

Some sources said in the week ended March 21 that offers were heard lowered to $215-$220/mt.

The QMJP negotiations are still underway across the industry, and more transactions are expected to be reported over the next two weeks or so, according to market participants.

Spot market led decline in Asia

Benchmark Japanese aluminum spot premiums as well as the broader Asian market slid through March as price indications declined ahead of the close of the Japanese fiscal year.

Market participants said price indications on a spot basis inched lower as Japanese companies were working toward closing their books for the end of the Japanese fiscal year in March and would have a declining willingness to pay in the near term.

Reported CIF MJP spot transaction levels declined from a $180-205/mt range at the beginning of the month to $145/mt on March 19.

Tradable indications were last reported in a $160-$210/mt CIF Korea range. Indicative offers were reported as low as $180/mt and indicative bids as high as $160/mt.

Meanwhile, spot demand for the first quarter in South Korea remained lackluster on a CIF basis, with a slight improvement expected toward the end of the second quarter, according to market participants.

FCA Korea tradable indications were reported in a $220-$240/mt range for the April quotation period, while offers were reported in a $230-$240/mt range for the Q2 quotation period.

CIF Southeast Asia premium levels continued in a downtrend, with offer indications at QMJP minus $15-$20/mt, and tradable indications much lower.

Platts assessed the CIF main Japanese ports spot premium for 99.7% P1020/1020A aluminum ingot at $150/mt, unchanged from the previous assessment, plus London Metal Exchange cash on March 24.

Platts assessed the CIF main Japanese ports spot low-carbon aluminum premium for 99.7% P1020/1020A aluminum ingot unchanged at $43/mt to the CIF Japan spot premium plus LME cash on March 24.

Platts assessed the CIF main Asian ports spot premium for 99.7% P1020/1020A aluminum ingot unchanged from the previous session at $175/mt plus LME cash on March 24.

Platts assessed the CIF main Asian ports spot low-carbon aluminum premium for 99.7% P1020/1020A aluminum ingot unchanged at $50/mt to the CIF MAP spot premium plus LME cash on March 24.

Preliminary feedback in response to the first reported Q2 2025 MJP transaction at $182/mt was very mixed.

Some market participants expressed surprise at the notable gap between preliminary offers and this transaction price, as well as the pace of price movements within a short time from expectations of $200-230/mt settlements to this $182/mt deal.

Other market participants said that the transacted level was representative of the latest market fundamentals considering recent spot transactions that preceded this QMJP deal, and reflected that earlier expectations of supply from Australia and the broader Pacific region being drawn into the US might not be playing out as anticipated.