4/17/2025
Q2 MJP 2025 ALUMINIUM PREMIUM DIP
The quarterly premium for aluminium supplied to main Japanese ports (MJP) for the second quarter of 2025 has settled at $182 per tonne over the London Metal Exchange cash price, down by $46 per tonne, or 20.2%, from $228 per tonne in the first quarter.
Producers’ offers initially began at $245-260 per tonne.
Market participants mostly held bearish sentiments throughout the Q2 MJP negotiations amid heightened uncertainty.
In February, United States President Donald Trump announced plans to raise aluminium tariffs from 10% to 25%, beginning March 12, leading to concerns of a change in trade flow, sources said.
“Tariffs shouldn’t be a big deal for Asian participants, the main concern is whether Australia is excluded from the tariffs, which might limit the supply to Japan,” a trader said.
Australia stands as the top origin of imported unwrought and unalloyed aluminum into Japan with 296,134 tonnes in 2024, accounting for 28.2% of the total imports of unwrought and unalloyed aluminium into Japan, according to data from the Trade Statistics of Japan.
However, Australia was not given an exemption from US tariffs on aluminium imports, easing concerns of supply tightness in Asia, according to sources.
Separately, US plans to impose tariffs of around 25% on automobile and semiconductors imports, initially announced on February 18 and signed on March 26, raised concerns among participants as it potentially dampens demand for aluminium, sources told.
Japan exported 1,369,063 units of automotives to the US in 2024, accounting for approximately 32.4% of the Japan’s total automotive exports at 4,217,044 units in 2024, according to the Japan Automobile Manufacturers Association.
“The 25% auto tariff will be a big hit on the Japanese automotive market. It’s negative news,” a second trader said.