Iran conflict pushes Japan's main aluminum premium to 11-year high

Glonghui, March 27 – Due to supply disruptions caused by the Iran conflict, Japanese aluminum buyers have agreed to pay the highest aluminum premium in 11 years, a cost that could further increase inflationary pressures on factories using the metal. According to sources familiar with the matter, some buyers accepted a premium of $350 per ton for Rio Tinto’s second quarter shipments, and a premium of $353 per ton for South32. As the negotiations are private, these individuals requested anonymity. This is the highest quarterly premium since aluminum premiums broke through $400 per ton in 2015. A South32 spokesperson said this is a “negotiated price”, but gave no further details. Rio Tinto has not immediately responded to a request for comment. The sources also said that some spot cargoes traded at even higher premiums, reaching $360 to $370 per ton.