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

Due to the supply disruptions caused by the Iran conflict, Japanese aluminium buyers have agreed to pay the highest aluminium premium in 11 years, which may exacerbate inflationary pressures faced by factories using the metal. According to sources, some buyers have accepted a premium of $350 per ton for Rio Tinto Group's second-quarter shipments, as well as a premium of $353 per ton for South32's shipments. Since the negotiations were not public, these sources requested anonymity. This is the highest quarterly premium since aluminium premiums broke $400 per ton in 2015. A South32 spokesperson stated that this was a "price reached through negotiation", but did not provide further details. Rio Tinto has not immediately responded to requests for comment. The aforementioned sources said that some spot cargo premiums were higher, reaching $360 to $370 per ton.