Reuters reported that premiums for aluminium shipments to Japan for January to March were agreed to at their lowest in more than two years as spot premiums fell amid ample supply, said multiple sources directly involved in the pricing talks. The deals were mainly done at premiums of $85 per tonne, with a few deals done at USD83 and USD 84.

The new premiums are down between 17 percent and 19 percent from the premium of USD 103 per tonne in the previous quarter, marking the second consecutive quarterly drop and the lowest since the fourth quarter of 2016.

The final prices came below the initial offers of $91 to $93 a tonne made by producers.

Japan is Asia’s biggest importer of aluminium and the premiums for primary metal shipments it agrees to pay each quarter over the benchmark London Metal Exchange cash price set the benchmark for the region.