This is according to reports on Bloomberg who spoke to three executives directly involved in the negotiations between buyers and suppliers.
Aluminium fees have doubled over the last year hitting record highs on the back of rising premiums in Europe and the US, but if this deal is signed off are expected to fall back by as much as 4% for the first three months of 2013.
Demand for aluminium from Japanese buyers has been slack in recent months on the back of a number of factors including a territorial dispute between Japan and China over islands in the East China Sea, which has hit sales of Japanese cars in China.
Speaking to Bloomberg Koji Iida, head of statistics at the Japan Aluminium Association, said: “It’s hard to find factors that may push up metal demand in the second half of this fiscal year.
“We are concerned about demand from the auto sector, as the anti-Japan campaign in China is taking a toll.”
The negotiations between buyers and suppliers are expected to be concluded by the middle of December.
