Aluminum buyers in Japan, Asia's largest importer, are set to agree on a record fee next quarter as global producers reduce output and rates in the United States and Europe surge, said three executives who will start price negotiations next week.
The surcharge for the three months starting in April may exceed $350 a metric ton over the London Metal Exchange cash price, according to the executives, who represent buyers and sellers and asked not to be identified because they aren't authorized to speak to the media. That is a gain of as much as 37 percent from the high of $255 to $256 this quarter.
United Co. Rusal, the world's biggest producer, said Tuesday it plans to cut output by 10 percent to 3.5 million tons in 2014, the lowest level in at least eight years. Alcoa Inc., the largest U.S. producer, said Monday it will close a smelter in Australia. Premiums in the United States and Europe jumped to all-time highs last month as inventories were locked in financing deals and made unavailable to users.