Aluminum buyers in Japan, Asia’s biggest importer, won the first cut in nine months on fees they pay to producers as London Metal Exchange proposals to ease the backlog at warehouses pushed down global premiums. The fee for the three months starting in October fell to $245 a metric ton over the price for immediate delivery on the LME from $249 to $251 this quarter, said three executives involved in the negotiations. They asked not to be identified as the talks are private. The LME has proposed obliging warehouses where waits extend for 100 days or more to let more metal out than they take in. Premiums to obtain metal will drop 60 percent to about $100 as a result of the rules the bourse is expected to approve in October, according to JPMorgan Chase & Co. The global market is heading for an eighth straight year of surplus in 2014, says Sumitomo Corp. (8053) Demand in Japan shows signs of recovery on Prime Minister Shinzo Abe’s economic stimulus.
Posted on: Wed, 11 Sep 2013 13:07:50 +0000
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