One global aluminum smelting company asked two buyers in Japan, Asia’s biggest importer, for a 6.3 percent increase in the premium they pay over London Metal Exchange prices, three executives directly involved in the negotiations said.
The company offered to sell aluminum at $255 a metric ton over the LME cash price for the three months through June, said the executives, who asked not to be named because the talks are private. They asked that the companies involved not be identified. Other producers have yet to make offers, they said.
The proposal would be the first fee increase in two quarters and coincides with efforts by Japanese Prime Minister Shinzo Abe to end deflation in the world’s third-largest economy.
The negotiations may be settled by the middle of March, the executives said.
Aluminum for delivery in three months on the LME climbed to a five-month high of $2,186 a ton on Feb. 21. It was little changed at $2,037.50 at 10:55 a.m. in Tokyo.