Aluminum Buyers in Japan to Pay Record Fee on Supply Drop

Aluminum buyers in Japan, Asia’s largest importer, may pay a record fee to producers after China boosted purchases and global smelters cut output.

Premiums for the three months starting in July may climb more than $30 from fees this quarter between $115 and $127 a metric ton over the London Metal Exchange cash price, four executives, representing smelters and buyers, said before pricing talks this month. The highest fee since Japanese buyers began purchasing most requirements through long-term contracts in 1996 was $125 to $130 for the first quarter of 2010, they said, declining to be identified as negotiations are private.